Squier Tele Custom
I needed to find an electric guitar again fast on a limited budget, so I picked up a Squier Tele Custom.
The PODxt gives me all the sounds I need at any volume. It's the perfect alternative to an amp and a rack of effects for the guitar. Clay and Curt have been invaluable in helping me catch up to the 21st century.
Mbox and Pro Tools LE
From Clay's advice and after doing my own research, I decided to investigate in one of the best digital recording software programs out there for home use. Pro Tools is very popular and should make collaborative efforts through the Internet much easier. Bundled software includes Reason Adapted.
I upgraded to the full version of Reason, and I'm glad I did. This will prove invaluable for quickly laying down backup tracks while composing, and for adding all sorts of non-guitar instruments.
M-Audio Keystation 49e MIDI Controller
I needed a cheap MIDI keyboard controller, and the Keystation 49e met my needs.
A multi-track digital recording studio, Audition is something I already had. Now that I have Pro Tools, I may only be using Audition in limited cases (it offers nice looping features I'm not sure Pro Tools has, but no MIDI support).
Sony MDR-V600 Headphones
These Sony headphones are designed and engineered for high-end audio applications.
Klipsch Pro-Media Powered Speakers
You can't beat the sound quality of the Pro-Media series, perhaps the best computer speakers available.
Samsung SyncMaster 243T 24" Widescreen Digital Flat Panel Monitor
I originally bought this for digital video, but the huge screen real estate makes the SyncMaster ideally suited for digital audio, too.