This is a great time to be your own recording and sound engineer. There are all kinds of great digital recording gear, from tiny portable recorders to multi-channel mixer-recorders with CD burners, and Linux has a wealth of good-quality audio recording and editing programs.
The hard part is figuring out where to start because there is so much to choose from. I'll talk a bit about the different types of digital recorders, and then run through recording a live performance and making a CD using Linux.
Two of my favorite sites for music gear are Musician's Friend and zZounds; if you're not familiar with digital recording gear check out this assortment of digital multitrack recorders, and here is a sampling of small portable digital recorders.