I have access to some decent digital audio recorders from my previous assignment at work. You can buy a really good digital audio recorder for $50 to $60. Olympus makes some good stuff.
http://www.olympusamerica.com/cpg_section/product.asp?product=1290 The sound clips of Maddogs and Staintunes in the Rocket Multimedia thread I did with a digital audio recorder. Though the mics were more tuned for voice, it still did a good job. I edited the audio with Goldwave, which can be found for free on the internet.
A program like pinnacle studio is good for editing video. Just before my kid was born I bought a digital camcorder that records to SD video cards. I can edit and output them in several different formats with pinnacle studio.
This one was my favorite, it was done with a stereo mic.