LOTS of options at that price point. So many, in fact, it's tough to capture them all (and I'm sure others will chime in,too):
MicsI'm with DSJ in that the mics are the weakest link, i.e. the most important decision. Listening to lots of recordings on LMA helps, but can only teach you so much, due to the huge number of variables: mic placement, mic configuration, venue acoustics, PA mix, stage mix, crowd, backend gear (pre, ADC), etc., etc. Still worth poking around on LMA, it may help you get to a short-list. At that point, I'd say just go with one and if you want to change your sound, sell and buy again (see below note on used gear).
Personally, I think large diaphragm mics sound good for amplified acoustic music. But they're a bit bulkier and have a very different sound from small diaphragm mics - some people love 'em, some don't. They also often provide multiple patterns (omni, cardioid, hypercardioid, figure-8) which offers flexibility to tailor your pickup pattern to your recording situation, whereas most small diaphragm mics are fixed pattern (not switchable) or require purchasing / changing the mic caps to change patterns.
I've recorded IG once or twice, and I'm tempted to recommend hypers due to the generally loud (not obnoxious, usually singing) crowd and at least partially acoustic band (usually not cranked out of the PA as loud as all electric, IME). Just something to consider.
Peluso CEMC-6 stereo kit with cardioid caps | ~$800 new, omni and hypers also available for future flexibility
Neumann KM184 | ~$900, fixed cardioid
Josephson C42 |
$750 used, fixed cardioid
other caps available for future flexibility
Audio Technica 4050 |
~$850 used, multiple patterns, large diaphragm
AKG 481 (i.e. C480B bodies + CK61 cardioid caps) | ~$900, other caps available
ADK A51TL | ~$750 new, multiple patterns, large diaphragm
AKG 391 (i.e. SE300 bodies + CK91 caps) |
~$800 used with active cables (a few hundred less without), other caps available
All-in-one RecordersTascam HD-P2 | ~$800 stock, new
Marantz PMD-671 | ~$750 stock, new
Fostex FR2LE | ~$600 stock, new
I recommend all-in-one recorders because they're easy to use, power, and have become much more cost effective the last year or so. As your sonic preferences and/or needs change, there's always the option to <1> have any of the above units modded by Cascade Media / Chris Busman or Oade Bros (unit must be originally purchased from them, usually) to improve/change the sound, or <2> move to some combination of separate preamp / ADC / recorder.
Media4GB / 8GB CF card(s) | ~$40-$100 new
Great deals on media pop up all the time online, and prices continue to drop swiftly.
MiscellaneousSet aside ~$200 of your budget for mic stand, cables, stereo bar, shockmounts, etc.
Final ThoughtsAt any rate, you have loads of options both new and here in the TS Yard Sale. The beauty of used gear, of course, is you can buy it, try it, and if you want to go in a different direction basically get your money back instead of taking a 10-20% depreciation hit right away. That said, there's obviously some risk involved in buying used gear online. Many of us know each other here, so asking for references if you're uneasy may help set your mind at ease, and effective and constant communication and documentation (see the purchase agreement in the YS) helps mitigate risk.