Take a look at the Zoom HD4. It sounds good, has fair two microphones on the outside, and is handheld. Might be able to pick one up for less than $200. Even the older models work well!

If you can stretch for it, get a Zoom H4N. Most of the cheaper hand-held recorders in the $100 bracket simply don't cut it for serious recording. Even if you can find a cheap one that has external mic inputs with plug-in power, getting good audio recordings without the pumping effect that auto gain control produces is not easy.

Not immediately apparent from the H4N sales information is a 3.5mm stereo jack socket on the underside that you can plug external lav mics into as it has the plug-in power that they need. Assuming your lav mics come with mono 6.3mm plugs, you could get a splitter cable to go from a single stereo plug to two mono in-line sockets and use the two separate mics to record on to two tracks as though they were stereo. Take care with choosing a Y-cable as most sorts are meant for driving two sets of earbuds and just parallel up the stereo wires. [[url=http://[/URL]="http://www.maplin.c…"]This [/]="http://www.maplin.c…"]This [/]is the type you would need, if you can find the equivalent in the US.

I also own an H4n and love it but the portable DSD MR2 by Korg is now available. I would expect this to be stellar compared to the H4n.
http://korg.com/mr2

I have no idea what it costs but since you said best, this is for certain going to be high end.

Full Compass is $200 less than Sweetwater.

[[url=http://[/URL]="http://www.fullcomp…"]Korg MR2 Mobile Recorder, SDHC | Full Compass[/]="http://www.fullcomp…"]Korg MR2 Mobile Recorder, SDHC | Full Compass[/]

Thanks everyone for the quick and excellent advice. I really appreciate it.