These effects can be added with hardware like an effects unit (EFX).
(Including delay, echo, flange, ring-mod, wah-wah, phaser, pan, etc,etc).

In general...
By using a 'hardware' unit - your desired effect is more 'hands-on' and in 'real-time', that is to say, what you hear is what you get - instantly.
Software programs can do practically the same, although there is a little bit more effort and patience required.
So for speed of use, practical use, I would always rate the efx units or 'mixer efx' over a software program.
However, software, when using the right program, can give you a wider scope of field. If you're willing to do the work, the 'production' will be enhanced with 'compression', efx, and then some.
So your 'production' may require a bit of analog work and digital work - combined.
To enhance the quality of the production, you could record to a digital medium like Mini Disc and then to CD, or direct to your PC's hard drive - a lot of current producers are 'going back' to analog recordings first, because the overall production has a greater 'warmth' than pure digital recordings.

Set-up
For a cost effective setup, you could purchase an Evolution Keyboard that connects to the PC (it's a PC styled keyboard - midi connected).
It comes with software but it's real application is when it's used with third party dedicated midi software.
This way, you can 'play' your bass, lead and percussion drum riffs, etc, via the keyboard (midi) and copy n paste the 'riff' exactly where you want.
The software I would suggest would hopefully have audio and midi 'channels' for you to assign 'samples' and 'midi notes' you just created - blended together within a 'sequencer'.
The sequencer should have multiple or 'x' amount of channels, say minimum 16-32, to allow you to have 16-32 tracks.
Many sequencers today have more than 32 assignable channels / tracks, but you have to remember that the PC's CPU and your soundcard will need to work harder - the more workload you give it!
A way around this is to 'bounce' tracks on to one-another.
For example, if you had 4 tracks running: drums, percussion, bass and lead, you could bounce the drums and percussion together on to one track.
Also, if you are using high quality samples within your 'production', a way of saving 'memory' and 'space' is to cut-down on the 'sample frequency' of drums and percussion.
The human ear can be 'fooled' if you reduce the recorded 'sound quality' of hi-hats, cymbals, bass drum, etc. You will have to experiment to see if your software can cope with multiple channels running at full stereo quality output.

Software
For software, you may wish to have a look at the EJ range first. The current release (EJ6) has a lot of new features that give the higher-end programs a run for their money!
Remix - by Steinberg, is a very good and under-rated piece of software.
It has a lot of samples to play with, works real time, allows you to work 'on the fly' and work 'live' alongside mixing!!! Worth a look.
Fruityloops 4 is still probably the easiest and most effective program for sequencing Trance, Dance, RnB, Garage, etc. But overall, I find I use more than one program to produce a compleated production.

Tips:
A lot of audio software will allow you to record your 'vocals' to the hard drive - but the 'result' will depend on what recording equipment you are using to do this.
Again, you have to experiment with your recording levels and choice of 'microphone', etc.
A lot of 'PC music mags', full of reviews and adverts, also give away a CD that contains copyright free samples for you to use for your productions. This will allow you to build a nice little sample library over a period of months. Have a look around, some mags give away more than others!
On the subject of samples - if you start experimenting with other artist's work - for your 're-edit' or 're-mix', then experiment away. It's a learning curve, and you will learn more from how others have 'produced' than working cold, however, you should understand the legal implications if you try to get 'air-play' of your 're-mix' on local / national radio!!!!
It doesn't mean you can't get feedback from playing the 're-mix' at your own gigs, but I would suggest you look-up copyright law on samples!!!! It will save you a lot of time and hard worked effort when it comes to the crunch.

Fact:
Progress in music production has leaped since the late 80's - thanks to individuals:
When artists such as Snap did 'Rhythm is a Dancer', they used 'tweeked' equipment, such as enhanced home computers (around 1990-1991).
Stock, Aitken and Waterman, The Utah Saints, The Shamen, Norman Cook, KLF and the like, were an inspiration to the software developers of today.....considering that today's PC's are far more powerful than those early 16bit machines.
Yet even today, you'll find an Atari ST in a studio still doing a little work - because the ease of use and reliability was ahead of it's time.

As you progress up the 'production ladder', you'll add equipment and software to your 'home studio'. So don't worry if it takes a while - the experience factor alone will compensate for future efforts.

Regards