THE LEXICON ALPHA
One of the least expensive USB audio interfaces is the Alpha made by Lexicon, known for its digital delay and reverb effects.
The Alpha is a two-channel device that has a front instrument input for guitar. Also on the front is a stereo mini jack for headphones.
There are also two quarter-inch line ins, an XLR input for a microphone that does not need phantom power, two quarter-inch line outs and two RCA line outs on the back.
It's very important to note that the Alpha does not have phantom power, so you can't use a typical studio condenser microphone without the aid of a separate phantom power device.
But the Alpha comes bundled with Cubase LE, which is one of the most powerful of the entry-level recording programs. There are certain aspects of Cubase LE that can be tricky (more on that later), but overall it's a great program that can yield professional results.
The Alpha by Lexicon retails for $99 but can be found for $79.