A lot of really good advice so far. My $0.02 about the rehearsal/practice thing is that your band should be very comfortable with the songs that you intend to record. The better you know the material the more open (less freaked) you will be when and if the process gets away from live performance. Making a great sounding overdubbed part doesn't happen unless you really know how to play the material.
Definitely don't deal with drinking etc... as part of the session. It won't be like a pub gig. You will feel more pressure than usual, be asked to concentrate more than usual, have more downtime than usual, and need to come back from that downtime ready to play your best. IME, The bands that have success with this kind of "party atmosphere" project have bigger budgets and less time pressure. Also, you don't want to do anything that makes you think that your playing is better than it is. You want to hear every glitch.
Have FUN!
Definitely don't deal with drinking etc... as part of the session. It won't be like a pub gig. You will feel more pressure than usual, be asked to concentrate more than usual, have more downtime than usual, and need to come back from that downtime ready to play your best. IME, The bands that have success with this kind of "party atmosphere" project have bigger budgets and less time pressure. Also, you don't want to do anything that makes you think that your playing is better than it is. You want to hear every glitch.
Have FUN!
