1) To record you'll need an audio interface to allow you to plug in your guitar and/or mics. There are many budget options, but I'd suggest you start by looking at M-Audio. I use there Fast Trac Pro model. Cheap, simple and effective. You'll then need some software to record into known as a Digital Audio Workstation or DAW. Audacity will get you going and fits with your budget - it's free.

2) If you're going to record your amp you'll need a microphone. The Shure SM57 is an industry standard mic and can be picked up relatively cheaply. Alternatively, you can just record directly by plugging your guitar, after it's been through your effects chain, into the audio interface.

Effects wise, perhaps you could look at a Cry Baby Wah Wah and a digital delay. The Boss DD series, EHX Memory Boy or MXR Carbon Copy might be good places to start looking. I'd suggest you look second hand to start with as people are forever swapping pedals and there are bargains to be grabbed.

Good luck with your journey. Let us now how you get on.