I have, lets say, about £30/£40 gbp to spend on a microphone for vocals.

I currently have one I got with a karaoke machine and im using it through the karaoke machine. As you can imagine, it sounds completely rubbish so I'm going to buy a new microphone and cable.

Would it make much difference, or do you think the karaoke machine is what is making it sound so bad?

It is hard to pick up the voice unless you go close, and you can hear alot of breathing and even sometimes you hear the 'pops' when you are singing. Also you cant really hold the microphone and sing as it makes a noise. I have no problems with that really as i play guitar and sing at the same time, but i guess its annoying when i re position the stand.

Any help is appreciated, as i am not used to looking at microphone specs.
There's an obvious weak link in your setup, and I'll give you a clue...it's not the mic, and it's not the cable.
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hehe thanks :] yeah i presumed it was part of it, but i thought getting a new mic might improve it as the karaoke has an EQ on it so i might get a decent sound out of it? I dont really have the money to buy a PA system haha.

What would you suggest to do? I have a small guitar amp I could use instead?
I got a peavey one off ebay for around £35. It came with a stand and a bag for it all to go in! Its a great mic for the price
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Well I only use it for bedroom practice with my mate at the moment, I just want to make it sound better in general.

What shall I do to do get a better sound? Put it through a guitar amp or use the karaoke system? Shall I get a new mic or wont it make much difference?