If it were me, I'd go for option #3. These days, fairly simple basement studios can turn out some pretty high quality stuff, especially if it's just voice and guitar and doesn't require a whole array of microphones.

A couple of months ago, I saw a copy of Roger McGuinn's DVD "Guide to Home Recording on a Computer." The lash-up he uses is pretty simple and not all that expensive, and he said he had recorded his last two commercial CDs using that gear.

It gave me some dangerous ideas! I just got a couple of pieces of recording equipment (a couple of good condenser microphones, a USB analog to digital computer interface (Lexicon Omega—$200 US), and downloaded a copy of "Audacity"—freeware—and as soon as I get a couple of mic stands, I'm in business. Good set-up for what I have in mind—getting the songs I know recorded and stored on CDs. What I do with them after that (just archive them, or start frisbeeing a bunch of CDs out on an unsuspecting world) depends on such mundane considerations as finances. . . . (As Dave Van Ronk said, "in vinyl, veritas.")   

Marion, this sounds like a good opportunity. The best of luck with it! Keep us posted.

Don Firth