Industry standard microphones = Shure SM58 for vocals, SM57 for guitar & other instruments. The main difference (apart from the pop shield) is that the SM57 has a more even response and the SM58 is tailored to give a useful frequency boost for vocals.
If you want to dabble with active condensers the Rode NT1 is very good (I have 2) or you could always try the AKG C1000s. Personally I prefer the Rode, but the advantage of the AKG is that it contains its own battery so you can use it without phantom power. It also seems a bit more rugged if you want to use it live and you should be able to get one for under £120.
As long as it is a decent quality microphone don't be afraid to experiment. Before buying the Rode NT1's I achieved some nice results recording vocals on an AKG kick drum mic. The large diaphragm (ooh missus!) gave a nice warm sound you see.
Cheers
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