I would second DJ_CHRIS's recommendations for a the Shure SM-58
But instead of the Behringer Pre amp, I would suggest you go for a Behringer Mini Mixer instead, this will allow your daughter to adjust the levels as well as connect other devices. I woulde even go as far as to recommend the either the Behringer Eurorack UB1002 Mixer or the Behringer Eurorack UB1202
my brother is very into recording, his new cd comes out later this year (self released, but the last two have sold fairly well) The quality of audio is fantastic and all he uses is a Creative Soundblaster Audigy 2. Though I have heard good things about the m-audio card, but would say that if the m-audio is waayy more expensive than the audigy2 then i would go with the audigy 2 as have never had any probs recording using one.
As far as software goes, personally I think the best mixing/recording software is Cool Edit Pro as this allows multi channels and is easy to use and manipulate the recordings. It also offers a good range of filtering options for getting rid of hiss and pops etc.
and if she wants to make music for backgrounds to songs i would recommend Reason 2.0, it really is a fantastic package