Thanks Jim & Larry! Funny Larry-here's what I decided on (not sure about the MIDI interface yet):

Mac: 2.66 GHz Intel Core2 Duo (24" display) - 4 gigs of RAM
Logic Pro 8
Roland GI-20 GK- MIDI Interface (?)
Garritan Personal Orchestra

I'm also signing-up for a year worth of lessons. The man is very knowledgeable about music production.

Thanks again everyone!

Best, John