Tascam DP-008
Couple of SM58s and a couple of SM57s
Run you around $6-700 but I will forever swear by my DP-004. The DP-008 is basically the same thing, but it has more inputs, and you can use either a 1/4" instrument cable or XLR (standard microphone) cables. The benefit of XLR cables being that you don't get a bunch of disgusting hissing sounds.
DP-008 is also an 8-track recorder instead of 4-track like the DP-004. It has input EQ, post-recording EQ, and reverb. They both record to SD cards (I'm currently using an 8GB card) and songs can be exported to your computer hard drive via USB, or if your computer's got an SD card slot, just remove the card and insert it there.
Don't know what your budget is, but that's an inexpensive option that will yield AMAZING results.