I'd agree with djtrialprice
If you're going to record tracks then transfer them to a computer for editing and mixing, why not just record them on the computer?

If you want to record 8 inputs at once (I take it you mean you're going to play live) then just make sure you get an interface with enough inputs. The Saffire that djtrialprice recommended is very good, it has 8 mic preamps and will be over £100 cheaper than the portastudio thing, allowing you a bit of budget for mics if you want. M-Audio are also good budget interfaces.

Software wise, try Reaper for free, or Garageband on a Mac is free with OSX, or if you're up for paying then start thinking about Cubase, Logic, etc.

The other thing to think about is where you are recording - some simple cheapish acoustic treatment in this space will improve the recorded sound more than thousands of pounds worth of mics and snazzy preamps. Also think about your monitoring situation, you'll need some half decent speakers to listen back and mix on.
(Son of Sam-i-am We're all as mad as hatters here, Thu 13 Nov 2008, 13:40, Reply)