I was impressed by the prodcution quality of AcousticAl's upload of Old Man. It has inspired me to want to do better than my wife's MacBook Pro built in microphone. I will live with the camera

What are the basic elements of a home recording set-up (not willing to call it a 'studio' at this point)? A digital audio interface? A microphone - directional (on a mic stand - close to your mouth) or a condenser mic - on a nearby table?
Wire the guitar and microphone through an amp and pick them both up with a condenser mic? Or wire them both through a digital interface?
Any guidance would be appreciated. Thanks!
Ron