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Help setting up a small basic studio

I've got about $3500 to use to set up a recording system for the music department at our local (small) high school. There are so many choices that I'm totally confused. I want to record live performances, usually either vocalist with piano or rehearsals of the choirs and bands, and save them on CD's that can be played on any standard audio CD player.

Small Steps - A Beginner's Guide To Pro Recording.

Hopefully, this will be a place where you can put some professional recording techniques into your own studio setup, whether it's in your bedroom, the basement, or your garage. It's gonna be about getting good sound for cheap, tricks you can use to improve your sound, and how to get more out of the equipment you already have.