I just bought a Zoom H2 digital field recorder. It sells for $199 and well worth the price in my opinion! We use it to record practices and gigs and it does a GREAT job! It has four mics that are near studio quality, and you can even record in surround sound using all 4 built-in mics, where you hear the band in each "space" they are in at practice. For example, the drummer is in the rear, the bassist right front, etc... You can hear each instrument very cleanly and in great quality. It is made for musicians, and recording concerts, or high quality podcasting, etc...
Check it out here:
http://www.samsontech.com/products/prod ... rodID=1916