My recording setup is crap - what should I do about it?

I produce experimental stuff - hip-hop, DnB, 8-bit (I'm a sucker for 8-bit), jazz. I've been recording since December 2010, using this setup:

Crappy Yamaha keyboard - live recorded from Shure SM58 with Blue Icicle XLR-USB adapter - into my parents' MacBook with Garageband - cut-and-pasted into loops - effects and EQ'ing added - played through earbuds (Originally Klipsch Image S2, then Image S3, now Bose IE2) It sounds like: http://pandaplayspunk.bandcamp.com/

I think I've reached the limit of what I can do with this, so once I get back into the position of recording (Late August-September) I want to try something new.

My future plans

I have a laptop (few-years-old ThinkPad) which I'll (have someone else) fix up and install 64 Studio (Linux). I'll try out a bunch of Linux sound softwares, and if none of them work out, I'll return to Windows. I'm also getting a pickup for my violin, so if I can figure out to connect a pickup to a computer, I'll start working on making it sound non-horrible. That crappy keyboard is MIDI capable. And I'm broke. Am I on the right track?

TL;DR: N00b has world's crappiest recording setup, is broke, wants change.