I use this

tracer s2
It's an el-cheapo 4$ mic I just randomly grabbed, as my last 6$ mic broke, and honestly, it works as good as I need for whenever i need a mic. Sure, it doesn't have the greatest sound quality, and there is a bit of noise noticeable when using vst's for heavy distortion, but honestly, it's okay for my needs
time for some self inserts:
I used it to make this: 
http://www.youtube.com/watch?v=NAfEBqvuM2Mand to record my nylon guitar on this: 
http://www.youtube.com/watch?v=SY57axbSaeAnow that you know what I  use, and how I use it, let me tell you one thing: what microphone you use matters way less than how you produce your music, your vocals and everything. 
in other words, getting a better mic will not automatically make your music better
of course, if you are really good at what you do, and your hardware limits you, you will need a better mic, but i am certain that the meaning of a good microphone is often overrated
edit: foam cover does wonders