I would look into a low priced condenser, or even a shure SM57 will give you far better results than the mic you have now. The reason you are getting noise (or at least one of the reasons) is that because the mic is so cheap, you are having to turn your input gain up far more than you would otherwise have to when using a "real" mic. More @Wikipedia
Hover over any link to get a description of the article. Please note that search keywords are sometimes hidden within the full article and don't appear in the description or title.