In This Day and Age
I'd go for PC recording. It's so easy to edit, mix, change, re-record, master, and burn to CD.
Additionally, many PC recording programs have whats known as "Non-destructive" editing; say for instance you record something on a track, then do another take on the same track, but you decide the first take was the better of the two, no problem, you just cut that second take, and there's the original take right there, in time, in the same position! Do that with an ADAT!
An ADAT is going to cost you about $1800.00 new. That'll give you 8 tracks. I bought "Nuendo" for about $1600.00 and the recommended sound card for about another $700.00 and I can have up to 256 tracks. Now, I've never used 256 tracks, but I have used 18 - 20 tracks and my system handels it fine.
Also, this program has on-board effects that would rival any outboard gear that a home user would come across.
Consider too, how you're going to get your music from you're guitar (By your nick-name, I'm assuming you are a guitar player) to the PC's multi-track recorder. Do you intend to mic the amp? If so, I feel that the microphone is the single most important link in the musical chain. I'd put my money there. Buy some really good mics!
Someone else mentioned Apoogee as an AD/DA converter, and they are excellent! They are pricey though. That will be my next major purchase for my studio.
Here's a list of my studio equipment:
Microphones
Neumann TLM103 2
Shure SM81 2
Shure SM(Dust-collecting)57's 2
AKG C1000S 1
CAD ST100 1
Processors
DOD Graphic EQ 1
Yamaha O1V 1
dbx286A Comp./Limiter 1
ART Tube Pre-Amp 1
Sound Modules
Roland
JV2080 1
Alesis
NanoPiano 1
Alesis DM5 1
Computer/Software
Compaq 750Mghz 1
Steinberg 96/52 1
Steinberg Nuendo 1
Instruments
Fatar Studio 90 1
Yamaha Alto Sax 1
Yamaha Alto Clarinet 1
Boston Grand Piano 1
Miscellaneous
Alesis RA 100 Reference Amp. 2
Rack Rider Line Conditioner2
Cables Various 1
Music Stand Manhasett 1
Furniture Various 1
Alesis
Monitor 1's 1pr
Tannoy Reveal 1pr
Shop around, ask questions, and happy recording!