Question about recording via PC microphone

I’ve been trying to capture audio files to my harddrive through a microphone, using the mic jack in my PC, but I’m picking up tons of static.

Is that an issue with the quality of the mic?

It’s a Radio Shack headset/microphone. I can’t remember what it cost. Under $30.

If I invest in a higher quality mic, would that solve the problem?

I’m using the sound recorder utility that comes with Windows 2000. Are there better sound capture applications that would let me filter the static?

Anybody reading this able to help? Thanks!