If I were you, the first thing I'd get is studio monitors. It doesn't matter if you use software or gear. You need to hear the sounds and how they will blend together in a mix. They don't cost a arm and a leg, and if you can get a pair, consider the sub for it as well.
Next, get some sort of main machine. This can be a sampler such as the mpc, a groovebox (just as long as it's a sequencer with sounds), or a midi keyboard with sounds & a sequencer. Doesn't matter which machine you choose, but just sit there and learn it. If you can sample, then sample. If you have to sit there and use the internal sounds and build a track from the ground up, do that. READ THE MANUAL!!!
Now, before you buy anything else, get a mixer. You need one if you're going to be using mics, more than one instrument, effect units, etc....4-16 channels would probably be fine, but go as far as you can with it. If you can get more channels, do so, because you'll be using them. Some mixers are using firewire, and that goes straight to your computer, but some may sound noisier than others, so research before you buy.
The next thing you could do is either...
a) get a compressor. Usefull for making beats bump, vocals from being too hard/soft, good for protecting your monitors from blowouts, and even shaping your sound
b) effect units Never know when you're asking youself if a track might need some more reverb, chorus, flang, tremolo, ring mod, filter, distortion, etc....You can use rackmount units, or if you're really crafty, guitar pedals! (But you'll probably be spending more if you go that route)
c) More intruments-Go ahead, get another keyboard, another rackmount sampler, drum machine, or whatever you think you'll put to use. Just make sure you've got enough channels in your mixer to accomodate it....
This should get you started. There's other things such as mic pres, digital/analogue interfaces, and all that stuff, but just get your feet wet in the pc as much as you can before you splurge on gear. This won't be a cheap hobby. You're either going to give up or keep going. But that's why I reccomend software, because more often or not, it's cheaper to get your feet wet with the computer. More softsynths, sequencers, and most of it imitates gear fairly well. But there will always be people that prefer real gear, just because it's less likely to crash, or have issue with viruses and crashes. If at all possible, learn a guitar or piano, so you know some things about chords, notes, and the language of music. That's really going to help you when it comes to learning how to make a song in your head turn into something you and the public can enjoy. Hang out with any dj's, musicians, producers, teachers, or salespeople you can in your spare time. Read books, magazines, and internet articles on music production, technique, tips and tricks. If you don't know, ask!
Not everybody who gets into music becomes a star out of it. Be humble. Don't worry if you don't sound like today's hit single. Most of them come and go. Just get your own style, identity, and skills, and the music should flow out of you from there.....Good luck!
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