I never liked fruity loops personally, I would try several different programs out there if you are planning on going the software route (for its obvious cost difference vs hardware) and see what you like best. Some of the better software out there includes fruity loops, reason, orion virtual studio, among others.
Also don't forget that in addition to whatever your virtual studio is, you also want to look into extendability via vst instruments/effects/plugins and if you have the money for it, a way to also include hardware into your software realm (eg; a musical keyboard with midi cable hookups etc for live input).
If you plan on vocals you will need a studio mic no matter what (there really is no way around the need for a good mic) and remember that oftentimes what you pay for really is what you get in that realm (remember, headsets = cheap, sound = bad

).
I personally like to use orion with a combination of hardware and vst's, etc for anything I make, your mileage may vary.
Basically, scout around, and don't sell yourself on any one approach until you have experienced your options, most of the companies that offer various software and such for this purpose offer demos so you can experience the product. Take advantage of it, because once you shell out that cash, you're stuck with it.