a variant setup
$ 200-225 | Rode NT-5's (used)
$ 50 | 15' cheapo mic cables
$ 100 | Denecke PS-2 (used)
$ 200-225 | Denecke AD-20 (used)
$ 20 | optical cable
$ 160 | Nomad JB3 (refurb/used)
$ 60 | Bogen mic stand
$ 60 | shockmounts
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$~850-1000 | TOTAL
I actually have the nt-5's and I think they are a nice mic... not too many people hoppin on the Rode bandwagon here though! I would highly recomend the ua-5 over the denecke just from the standpoint of flexibility. You have more input/output capability, the ability to run a sbd feed in and mix that with your mics for a matrix, and if you buy from oade, you can also send it back to them for an upgrade (they actually modify them for you to work as a stand alone unit, and then can do performance upgrades as well once that upgrade bug gets you). The price on this unit new from oade with the basic modification (digi-mod) is $300 and then a battery set-up is about $70 including a few bucks for radishack parts. You will also need a bag, but if you are creative, you can set yourself up for $20-$40 there. Here is the way I see it:
$ 300| wide selection of mics, pic what sounds best to you!
$ 50 | 15' cables (You can get nice, custom made cables for this from a Jason B in the yardsale)
$ 300 | digi-mod ua5 from oade
$ 20 | optical cable
$ 160 | Nomad JB3 20GB (refurb directly from creative on e-bay) approx 30hrs of recording time!!!
$ 40 | 13' mic stand (various e-bay supliers)
$ 60 | shockmounts
$ 70 | double ua-5 battery set-up
$ 40 | bag
$ 30 | stereo mic bar
$ 70 | shipping and/or tax
$ Total $1140
and if you really want to keep it under $1K you can probably get a $25, 7-9' stand (usualy ok for indoor), wait on the shock mounts (I'll get crucified for that one!) , do a $30 single battery, a $10 stereo bar, and maybe find some of these things used for less $. You would be sitting pretty good for now and have options to upgrade as you go without throwing everything away and starting over!
Matt