I remember a few years ago we wantd to record a few reheasals in someones front room...
the bassist sat opposite me facing me his amp pointing my way and me the same amp pointing towards him and me facing him. The drummer was sat to my left and the singer sat to my right facing inwards (so practically we was in a circle) we dropped a condenser from the ceiling by wrapping it around the light fitting, a condenser dropped down above the drums a sm58 for the vocalist going into one of the marshall acoustic amps that have a guitar and acoustic input.. We all levelled out so it wasn't too loud and just played as we normally would... All this went direct into a mixer and then a PC
It was s suprisingly good nice "live" type sound... We thought the drums wouldn't come out well but interestingly they did
I think keeping it simple like that added to the music we was trying to play.... I imagine as soon as you add a PA etc your starting to get louder amps need to go up etc etc so you might need better equipment....
We've also used one of the portable recorders http://www.guitarampkeyboard.com/en/73392 I found this very good for acoustic work. I could sing and play with this sat a couple of metres away nd it picked up a good amount of detail and was very good quality even if my singing wasn't I've actually really enjoyed messng with this as my recording PC is dead at the moment its give me something to play around with . In a band setting however it just didnt seem to get the bass response, specially live recordings they sounded like there was no bassist or he was being drowned out and because there is no seperate channels you cant mix the bassist in Also it was very easy to clip the mic on it and get a mushy vocal quality (very apprently going from me singing to the female vocalist who has alot more ooomph in her voice)