Check out Mattin -
discography - he's a Spanish laptopper and performer who refuses to pay for or pirate software so limits himself to freeware off the web. He also uses a bog standard, very cheap, laptop (and treats is VERY badly)
His set up probably cost him no more than a couple of hundred quid and he's got records out all over the world and appears in magazines.
It's possible to maintain a recording career these days with a £10 mic, a £300 PC laptop and a harddrive full of freeware. Get a PC with a 'mic in' and you can even ditch the m-box!
Audacity, Kristal....both very good and both free. Look around and you'll find a wealth of free stuff out there for recording.
Ultimately, trust your ears. If it sounds right it IS right, whether it's recorded on five grands worth of gear or a hack for your iPod.