I take it you have already read the Newbie FAQ:
http://www.taperssection.com/yabbse/index.php?topic=4237.0If not, it should answer many of your queries...
However, to give a short answer, take your $300 and buy this:
1) Creative Nomad Jukebox 3 (refurbished on EBAY from Creative) - $130
2) Hosa ODL-276 Digital Format Convertor - $40-$80
3) 1x 3' Coax Digital Cable (looks like single RCA to RCA cable) - $10
4) 1x 3' TOSLINK Optical Digital cable w/ 1/8" TRS Adapter - $20
I would also recommend you get a battery pack of some kind. I used to use 8x recharge AA batteries together in a pack (9/2 volts), lots of people use 9v remote control car batteries, and I recently bought a 9v Walmart External DVD Player battery pack. This will be for the HOSA, the Nomad has its own battery.
With this rig, you can "patch" out of any rig out there. By "patching" you can make a judgement for yourself of a couple of things:
1) Do I like this hobby to invest more money (on preamps, convertors, mics, etc.), or should I quit.
2) Which kinds of equipment do I like and dislike - do these mics sound good or bad to my ears. How about this pre-amp, or AD convertor, etc???
Anyways, if anything, its a fun way to meet people (other hard-core music fans) and get to know the band.
The bad thing is, generally as a taper, you are the first to arrive at a show, and the last to leave. I've seen many 1 hours shows, that turned into 4 or 5 hour nights, getting there early to set-up, wating waiting waiting, then packing up and talking to everybody and their brother that wants a copy, etc...
It is time-consuming, and depending on how you feel about the crowd, etc., it WILL generally take away from the "fun" you have - no hitting on chicks, no getting (too) schwilly, no heading outside for happy-fun-time - You have to stay there right next to your stuff or someone will break it, pour/spill beer on it, steal it, etc...
But when I get home and listen to my newest tape, I smile smile smile and its all worth it...
Terry