--- You wrote:
Griffin's iMic for the hardware portion and Peak LE for the software
--- end of quote ---
I'd say buy an RCA stereo cable with an 1/8 stereo  plug on the end and try the
native audio-in on your machine before spending money on a usb a/d converter. 
You might find it suits your purposes just fine.  

I use Peak a lot.  It is very fluid for editing but you don't need it to get
started.  There are freeware audio editing programs that work quite well.  The
free version of ProTools is wonderful but the learning curve is steep.

You could get started for $5 and add on when you find you need it.

Rich

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