I play the guitar and wish to record and mix my own music.

I use a laptop and wish to find out what recomendations for software
and hardware. ie keeping the cost down.

I have a friend overseas who would also like to do the same thing and
join each other on projects to produce music.

Does anyone have any advice on where to start.

Inputs for the laptop ....to play more than one instrument and vocals
at the same time.
I would also like to use software to produce the drums.

Looking forward to your replies

NZed

Does anyone have any advice on where to start.

Start in alt.music.home-studio, which is the right place for that
question. Also start by reading their FAQ document, which should give
you a lot of the basics.