Just an update fellas - and it is positive -changed my driver from WDM/KS to MME and it now plays fine - I must confess, I don't know what all these driver modes are, what they are for or what they mean but it seems to have done the trick!  If anyone can provide any details for a better understanding of these terms it would be much appreciated?  Also, this working means my speakers actually sound quite good!  
 
I googled the M audio M track interface - it looks the ideal bit of kit to get me started and having the MIDI ports built in would help further down the line too.
 
I am still interested in the Samson G Track usb microphone with interface built in, reviews are good and with it being 2 things in one, may save me a penny or two in the short term, if anyone can share any experience about this device or using a mic with an interface built in, that would be great. 

Generally audio devices with integrated interfaces are not good solutions for music production. Even though it may cost more, a separate microphone and audio interface is a much better solution.

+1.
If you don't want grey hair, stay away from the USB mics. There are some who have successfully made music with them, I've heard, though. They are better for podcasting type of things.

 
Cheers guys - that's the sort of definite info and feedback i need (i.e. tried and tested from users).  If im goino get serious about this, a larger outlay now on the right gear will also save for me in the future -  I think i may plump for the M audio M track and pick myself up a half decent XLR condenser mic. I don't mean to keep the post going but any suggestions?

If heading down the path of "getting serious" you definitely want to improve gear. Stepping up your game as you allude to is a good approach. I have never used the M audio M track, so cannot speak to it directly; but for entry-level, it may be more than adequate for your needs.
 
As far as mics, I just got my first condenser mic 4 months ago, and they are incredibly sensitive (pick up everything, and if you drop them, they can be damaged). Depending on your environment, they may require a lot of babying (i.e. environment they are used in), or a digital way to "deal" with the background noise they can grab on you. I have used dynamic mics for years (over 20 now), and they do not require delicate handling and do quite well depending on application, but are typically not as "bright" (which is not necessarily a bad thing). For where you are, a decent XLR dynamic mic may be a better choice to start.

 
Cheers Mettelus.
 
I have recorded vocals a few times with both dynamics and condensers and find that the condenser gives a better recorded sound, especially for my voice.  You are right though, they do pick up everything, including and annoyingly intakes and outtakes of breath etc.  however i found by putting a sock over it or getting a pop guard generally stops it.  I think my decision is made up and I want a condenser but having not bought one before there a pretty big choice out there and like most specialist items, you only get what you pay for...