Podcast Solutions for an idiot and his idiot friend

A buddy and I have been doing stand-up for sometime and are going to hang it up. We decided to start doing a podcast to spread our stupidity, the only problem is he took a job in Minneapolis and I live near Milwaukee. We are wondering on the type of hardware we need, and what type of microphones are recommended for this. Also, we aren't exactly sure how we can record live with him and I in different cities. We don't need it to be state of the art, just good enough so it doesn't sound like two guys sitting at computers 450 miles apart... which we are. If it doesn't cost a ton of money that would be awesome, but it is not a necessity. Any suggestions would be awesome, otherwise we will just continue on not being good at solving this issue on our own, thanks a ton in advance!

You might want to look into Google+ Hangouts. I think they have integrated record-to-YouTube functionality now?

As far as actual podcasts, there has been a post on the site on how simple it is. Can't find it right now though. Google has quite a few intro guides, and Podcast Squared is a pretty good podcast about podcasts and podcasting, I think they've done shows on the subject before as well.

Some of the podcast I watch use google hangouts and it seems to work for them. The Game Station which is on youtube, itunes, and google hangouts is a good example.

Thanks a ton for the suggestions, I never thought about the Google Hangout idea at all. Here's hoping that works, and I'll check out that site as well. Thanks a bunch again, hopefully I don't screw this up