Music Recording Software suggestions?

So I like to make music recordings. Normally I've used a combination of Guitar Tracks Pro 3 and Fruity Loops (the express version), running my inputs through an M-Audio Fastrack USB. While this has worked ok, I need something better. When I look at things, though, there's so much jargon that I'm not sure if it does what I need it to do. I figured there must be a few of you out there familiar with this stuff.

Ideally, if there's some way to tweak Guitar Tracks Pro 3 to do all this that would be best, but I don't know that I can. It can run plugins I think but I'm not sure how to work them or what's available... maybe tweaking Fruityloops might be the answer as well. I don't know. I find that program kind of tricky though and wouldn't mind trying something else anyhow.

Here are my requirements:

1) I'd like it to be a wav sequencer like the Cakewalk kind of stuff, but it needs a drum machine that can run alongside the wav forms in the same window. Right now I am bouncing between programs with the drum machine and the guitar tracks and it's murder getting the drum machine to do anything intricate that matches the guitars. The drum machine must also be capable of sampling.

2) I want it to be able to let me program sounds and quantize them. Between 1 and 2, think of something like The Postal Service or The Notwist. I'd like to be able to do that sort of thing.

3) Whatever it is must work (or be made to work) with Windows Vista on an HP Pavilion dv9000 laptop. I know, I know, Vista blows. I KNOW. But it's what I have.

4) Having zero latency would be really nice. I'm using an M-Audio Fastrack USB with my laptop. It has zero latency when monitoring, but the recorded track gets about 10 milliseconds of lag. It's not the end of the world to bump it over afterward but it'd be nice not to have to. If there's some reasonable hardware that I need to buy to go along with this that would allow that, please suggest that too.

5) As a student, price of course is of concern and I'd like not to spend any more than I have to to get the above. I do have some money saved up though and am willing to spend what's needed to get what I'm looking for.

Thanks!