I mostly picked stuff that emphasized value for money so this is really more aimed at someone who just needs a small portable setup for recording stuff stuff at home with. I'm not trying to cover super expensive gear and supreme audio fidelity, this is more or less a basic setup for a beginner.
Note: I am sure you can find better prices on different hardware, but this is just my personal recommendation. I suppose if you spent more time researching you could find better deals and so forth and if you do please let me know in the thread
Anyhow lets get started with the music hardware first.
About some of the hardware prices.
I am not affiliated with Tomlee or have any gain from linking to them. I just am using them as a example of a canadian music store. I imagine you could find better prices if you shop around! I know Long and mcquade sometimes has stuff that's better priced stuff.
RECORDING SOFTWARE
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So here are the two best options in my opinion.
TRACKTION $66.00 Canadian
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If you want a DAW where you don't have to deal with lots of separate windows and tabs then you should check out Tracktion which is roughly $66.00 Canadian
http://www.tracktion.com/
Tracktion has a one screen approach to it's workflow so what you see on the screen is basically what you get. You don't have to wade through a ton of windows which can be somewhat tedious to navigate through and it has a good workflow that covers most professional requirements for creating and recording music.
REAPER $66.00 Canadian
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If you don't mind wading through windows and working on multiple screens then you should check out Cockos Reaper. Reaper is roughly $66.00 CAD for personal use, however if you want to use it commercially then you have to pay $225.00.
http://reaper.fm/purchase.php
Reaper has a more traditional workflow to it that you will find in bigger name *and more expensive* products like Cubase, Logic etc. It covers a ton of features and can be relied on for any professional task.
HARDWARE
KEYBOARD CONTROLLERS for about ($100.00 Canadian)
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Alesis Q49 $100.00
http://www.tomleemusic.ca/index.php/172346.html

Another option is this if you don't want drum pads or knobs.
M-Audio Keystation II

http://www.tomleemusic.ca/index.php/hom ... 73133.html
STUDIO SPEAKERS ($250.00 Canadian for a Pair)
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Here is a video review of the M-Audio BX5a
(IF someone can find a reputable review of the BX5 D2s lemme know)
M-Audio BX5 D2 5-Inch Monitor *edit* fixed link
http://www.tomleemusic.ca/index.php/161195.html

STUDIO MICROPHONE / INTERFACE / HEADPHONES ($280.00 Canadian)
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http://www.tomleemusic.ca/index.php/mul ... 64639.html
OK so for everything here it will cost $696.00 Canadian roughly, and it does not factor in taxes.
After you factor Taxes in for BC it sets you back about $779.52 Canadian for everything.
If your in a different province you can also factor in how much your taxes will set you back with this tool.
http://helpsme.com/tools/free-gst-hst-p ... tor-canada
So what about plugins ?
Well.. here are my recommendations on getting your hands on some.
1st method is to go out and pick up a copy of Computer music magazine as it will give you access to a bunch of awesome free synthesizers and effects.
Here is a full list of the plugins.
http://www.musicradar.com/computermusic ... cts-571808
Here is a FAQ about the plugins that they offer.
http://www.musicradar.com/computermusic ... ins-571802