That's definitely enough to get "good" quality vocals. I mean, for all my stuff I'm using a $100 condenser mic and I'm completely happy with the sound I get. Could it be better? Probably, but it works for what I need it to do. Honestly, I would spend a lot of time looking around online for information. There's heaps and heaps on info out there on how to make a good budget studio. Make sure you know what your goals are with it, and be realistic.
http://tweakheadz.com/guide.htm
I found that blog extremely useful when I was trying to learn the basics.
The biggest thing is regardless of what gear you're using, get to know it, learn about mic positioning, probably some basic editing skills, etc.
For what it's worth, I'm using a Boss BR-900 that I bought in 2006 for $750, and a Samson C01 that I got for slightly less than $100, and this is the kind of quality I get out of my recordings
NOT studio quality, or even close, but good enough for demo's etc. Those Boss porta studios pop up online for between $300 and $400 quite frequently these days...
Good luck! Home recording can be a lot of fun!