I'd recommend trying to figure a way use the digital input on the MT2. The analog inputs are not the best. Check out the edirol ua5. Its a mic pre and an AD converter. They show up in the YS often and give you a great bang for the buck IMO.
What he said. The best use for an MTII is as bitbucket, where it still has an edge with 24bit.
Pair it up with an UA-5, if you want stealthy mics to go with that, AT853RX is ideal, comes with hardwired phantom adapters.
OK, the UA-5 is not the stealthiest device around, but I've done plenty of festivals with mine, just use your jedi skills.
Regarding the mics, it's really up to your budget and size requirements.