1. Get a cheap, used recorder (e.g. Nomad JB3, iRiver H120, etc.) and use the internal mics.
Slight correction here. I don't think anyone endorses the internal mics of the Iriver, it's mono and distorts like hell. And the JB3 doesn't even have any!
Apart from that, I have a totally different approach to entering this hobby than most suggestions here.
There's no point waiting if you want to start now! I the meantime, you might miss shows that noone else will tape.
Don't sweat it about "wasting $100 on inferior gear that nobody else will want". When you upgrade, you can easily pass on the rig to another newbie, or ust put it on fleabay. You'll recover most of your investment, promise.
An example what you can get for almost no money:
Mics$23 Panasonic omni pair (
http://cgi.ebay.com/ws/eBayISAPI.dll?ViewItem&item=110424194477)
Recorder
MZ-NH series Hi-MD (model with mic-in)
$40-$80 going rate on ebay, depending on where you live.
Total: from $65 (plus postage)
I don't see the point getting a H120 or a JB3 if you won't use the optical in. An iriver H320 would do the same job, but cheaper. Going rate on ebay is as low as $50-65 these days!
That said, the iriver doesn't have a built-in mic preamp like the Hi-MD recorders, which means you'd probably need to apply more than +24dB gain (or buy an external pre, which would bust your budget).
OTOH, the iriver is a much better upgrade path, if you decide to get a Church combo later on. Take your pick...