For just a reference recording or a "by chance" usable demo a hand held is by far the easiest way to go either with the built in mics or some allow to use an outboard mic of better quality. When I want something of demo or live recording quality for my band, I use an 8 track hard disk recorder (Korg 888). I have an 8 channel short balanced cable snake and run anything going through the mixer directly into an individual channel. For the drums and bass which I don't run through our small PA I set up mics and run them directly to the recorder. If I have a channel left depending on how many people are playing that night, we have up to 8 people sometimes, I'll run a "room" mic as well. I mix all the tracks on lap top later.
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