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Home Recording with a Budget of €800-€900

Hey,
I'm in an acoustic band and we've been saving up to record an album by paying for it in a Studio, the usual way. However, we recently decided to spend the money we've saved on some equipment to pump out some half-decent demos instead of focusing all our cash on a short period of professional recording. As such, I'd very much appreciate any feedback to these few questions:

Entry-Level Hardware

Hi guys. First post here. While I have little real-world experience, the world of audio recording has always fascinated me. Well, the opportunity for me to test out my knowledge has come around. A friend's band (genre: ska punk) wants me to do their recording. I would like to know where to start in terms of entry-level hardware. I would like to be able to record the following:

Ametuer High School Kid Who Needs Help Recording Guitar!

I am trying to get the best sound out of my acoustic electric guitar. I know using a studio mic would get a better sound but this is what I have. I'm running it straight through the interface but it sounds kinda bad. I was wondering if there are any good VST's that can help or any suggestions to what I can do to better the sound! Thanks!

Blown Speaker and/or Amplifier Symptoms?

Does anyone want to list the symptoms of a blown speaker (or malfunctioning amp)? Obviously, distorted crackle may top the list for a speaker, but can they do other things? I have an active FOH speaker that suddenly decided to be much quieter than the other two. It is flown at around 20ft and not very accessible so it wasn't just turned down.

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