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A USB mic is great for this task, because it bypasses the computer's sound card, which on most PCs is a piece of junk just adequate for playback.
I've had good success with the Samson CO1U, less than $150.
Our very canny forum member Ty Ford recommends the Rode Podcaster (abt. $230), because it has a built-in headphone jack, handy for monitoring with headphones while you're recording. This is a good thing because there is built-in delay (latency) that occurs when laying down trax with a usb mic and monitoring through the PC's soundcard.
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