Hi! I know there have been threads on this already and that there's a lot of information out there but I really feel like I want to ask these questions for myself.

I really want to get into recording but I'm hesitant because I can't spend THAT much money on gear. What I want to record is electric guitar (distorted and clean) and acoustic guitar (this one's really important for me).

I already have my instruments, so I guess what I need now is a DAW, an interface, and a (few?) mic(s). So my questions are:

1) What is "good enough" when it comes to a DAW? Can I make do with a cheaper (free?) one or do I need to shell out on one of the top-end ones?

2) What are some budget interfaces that would do what I want well?

3) Microphones? Do I need more than one? From what I've read something like sm57 won't cut it for acoustic guitar, and a good acoustic sound is something I prioritize. Are there any cheapish options that would do both electric and acoustic guitar well?

4) Did I forget/miss anything important that I need?

1) Cockos Reaper
2) Tascam US122

Ever DAW is different. I've had my fair share of them and I recently bought Mixcraft because I enjoy the feel of it. Of course there are features that some DAW's will have that others will not and that is something you will have to try out for yourself. A lot of people use Reaper on here. Most of them you can try for free so it would be stupid not to test out a few.

1) Reaper
2) There are a handful of interfaces around $99 that are sufficient and reliable for recording guitars and working with other stuff.
3) Before buying a microphone for acoustic guitar, try recording with an SM57 and see how you like the sound. Most microphones that are recommended for recording acoustic guitars tend to cost at least $200 and get very pricey. You might like the sound with an SM57, and you can always get a different mic later.
4) Knowledge of how to operate it

Well it all depends on what kind of quality you want out of the equipment. I'm the type of person that wants good value for my money (I don't mind throwing $500 more for quality even if it means waiting another month). If you want something to just record a simple demo, then a low-end $99-$200 DAW will be just fine. If you want to get more professional sounding results wait that extra month and put in say $200-$500, and you'll be glad you did that. Obviously $200-$500 isn't going to be professional, but, to someone who hasn't been in the business of recording for years, your ears will most likely not detect a huge difference which you would regret by any means.

As far as a mic goes, I agree with Zodijackyl, a SM57 will do you just fine; once again, to an unprofessional ear this will not create a huge difference which you'd regret. My strongest advice would be to try out the SM57 on the acoustic, if you like it then great, if not then keep it anyways because you WILL want to use that for the electric guitar. Don't go crazy and spend $200+ on a mic for the acoustic guitar, this is metal, the acoustic guitar's tone isn't supposed to be like your in the same room as the guitar, it generally has a slight processed sound to it on record to typically create an atmospheric sound to it, not a country pickin' tone (because if you're looking for a country tone, get the hell off this site).

Best of luck! If you have further concerns, let us know!