And Frank from the NSC as above.
Try and do as much of the work yourselves. You don't need very expensive gear to make a good recording these days and for the price you would pay for studio time and engineering charges you will buy good equipment.

Once you have a master CD made, shop around for companies to mass produce your CD's. You will typicially get 1,000 CD's made including full colour inlay cards and jewel cases for about £1 each. Check out industry magazines like "Sound on Sound" for suppliers.

£1,000 for good recording equipment (2-3 mikes, mixer, mini disk, CD burner etc.) and £1,000 for productiom costs; totaling £2k. So you could make back your costs by selling 200 at £10 each. Do the tour of all the trad clubs and have a launch night and you should shift the first 200. After that you are in profit for every one of the following 800 you sell.

But it's tough work and as always the work will be left to the few enthusiasts who are willing to do it for the love of the music. So -get a good small team together first and make an achievable plan before you embark on any expense.

Good Luck.
Frank McGrath