I end up recording quite a bit using the built in condenser mike in my camcorder. That gets run into my iMac and dragged into Garageband. Then I axe the video track and apply some reverb, a little echo, perhaps some other tweaks. Generally it works OK for me.
I've also got my friend Peter's old tascam four track, which uses cassette tape.
What I'm lacking is a decent standalone microphone that works with my computer... I used to get good results with my old powermac stereo microphone, but it's got the wrong miniplug for my new iMac.
This item of yours looks like it's a good price too.