If you have a short budget, buy at least three large diaphragm condenser microphones and a small mixer with Phantom power. Along with this you will need a recording device or interface with your computer + cabling. A small Behringer board and 3 Behringer b1's will allow you to cover a live drum track, as well as stereo guitar tracks. I have set up and researched systems for small organizations for years and this is the best sounding, low cost solution to get started. Behringer bashers are everywhere, though good results have come from Behringer gear for many years at a good price. People who use and take care of their gear properly get both results and longevity out of their kit. Read the manuals, and with a set of closed back headphones and a good ear you will find adequate microphone placement and decent tracks.
The B1's or comparable priced condenser microphones are necessary, as well as a phantom power source to run them, but if you have a little more in your budget, Fostex Workstations offer excellent sound quality. ALSO, Alesis and Behringer offer mixers that are USB capable, with free software for your computer.
-lexdrummer
