If you are wanting to go individually tracked anyway, getting a recording interface with mono/stereo inputs is enough. As long as it gets in and out with as little latency as possible, you should be okay.
For our first demo (which turned out pretty acceptable for the low amount of $$$ we put into it), we used a low level Edirol that had stereo inputs going into the computer through USB. This meant that it had no sound card interaction which could conceivably further complicate things or make it sound bad. We had a trusty Shure SM-57 mic for instruments and a SM-48 vocal mic. Hooked it up to a mixer we already had to provide mic preamps. That's it. Recorded it with software recording program and it made for an acceptable enough sounding demo.
Here is my advice:
Recording Interface AND Preamp:
M-Audio Mobile Pre USB
[Invalid or Expired Link Removed]
Features:
2 x 2 16-bit/48kHz analog I/O w/ preamps
2 mic inputs
2 high-impedance line ins for guitar, bass, etc.
stereo line outs and headphone out
USB bus-powered for total mobility
$179.95 MSRP ($150 on MusiciansFriend.com and others)
**OR**
M-Audio AudioSport Duo
http://www.musiciansfriend.com/srs7...8744660/g=home/search/detail/base_pid/701373/
Features:
2 mic and 2 balanced 1/4" TRS ins
2 preamps
2 gain stages
48V phantom power
Pad button for each mic input
$150 on MusiciansFriend.com (limited quantity but you can probably find somewhere else just as cheap)
Mics (PG-okay, SM-better):
Shure SM-57 instrument mic - $90 at MF
or
Shure PG-57 instrument mic - $60 at MF
and
Shure SM-58 vocal mic - $100 at MF
or
Shure PG-58 vocal mic - $60 at MF
At most you'll be $40 over budget, at the least you'll be $30 or even more under budget if you switch to other brands of mics (though quality I cannot assure).
As long as you have a computer and some sort of recording software in which you can mix the tracks, that's all you need.
*NOTE* Creative and
properly researched use of these few materials will yield results that equal spending much, much more money. Seriously!
-Transverz