ssingh0, i've got a pair of 58s that i feed into my computer thusly:
SM58[XLR] -> Mixer -> Stereo RCA to 1/8" -> crappy line in on my Audigy
I've used polderbits, wasn't too impressed. Try the built-in windows sound recorder program to test your input levels. One thing you may have difficulty with is determining the actual input you're using (ie on my audigy i've got left in, right in, stereo in - but they all look the same on the back). For recording i use Cakewalk, but depending on what you're doing, you may need ProTools, or you may need a crappy wav recorder.
You don't need to amplify a dynamic mic (a condenser requires a preamp or 'phantom power').