Now I know this suggestion might get some stick from people much more experienced and professional than me, but here goes:

Consider buying a portable recording studio (eg Roland 880 digital workstation) and adopt a DIY approach. Before folks jump up and down with indignation let me put the case -

1. For around £200 you can get a quality used digital recorder on Ebay (people upgrade like they upgrade their PC's, so you get something that's dropped from £1000 to £200 in double-quick time). You need a decent microphone of course - but maybe you've already got one.

2. You gain an invaluable insight into the recording process.
3. You can practice and experiment to your heart's content.
4. You learn fast about the recording environment and mike placings.
5. You improve your playing and singing (trust me on this).
6. Your friends start to think you're very smart and a techno whizz.
7. You can always go into a pro studio for the real deal - after your apprenticeship.
8. If it doesn't work out for you - there's always Ebay to enable you to get your money back!
9. Or - You can do some recording for your friends etc to recoup your investment.

I'm sure there are other reasons too, but surely you've been sold on this idea already?

Good luck - Jim