Sian
I use an old Sharp MD-SR60 minidisc r4corder with a Jessops SDX-400 stereo mic designed for a video recorder. About £30.
The results are excellent and, so far, no problems. There is no handling noise, which one often gets with handheld mics.
I try to use my mic on a small table-top tripod, again from Jessops, about £5.
Suggest you investigate mics designed for video us, as they can usually be found cheaper than those for audio. In the ususl surroundings of a folk club, singaround or concert the extranous audience noise will disguise any percieved deficiencies in the mic.
Colyn.