Use a bunch of dynamic mics. The older the better. Or a bunch of SM-57's, even. If you're really serious about it, you might want to spring for a ribbon mic, but if it's not in your budget, then don't sweat it.
Then go and buy yourself
a Bellari RP-220 mic pre. Don't drive it to hard. It's distortion is a little nasty, but if you get it just before distortion point, then it sounds pretty good. Don't use one of those toob pres like the ART, VTB1 or similar.
Try tracking everything in a dead, dead room. As dead as you can possibly get it. Get a bunch of old bed mattresses, couch cushions, etc. Raid the 2nd hand store if you have to. Just put together an unbelievable amount of padding in one room; stack it every which way, scatter them around the room, etc.
Now, come mixdown, if you think you want more of a "The Band" or "Harvest Moon" sound, then keep the drums and most of the other stuff pretty dead. If you want more of a Stones or Motown vibe, then get one of these off ebay:
http://cgi.ebay.com/Orban-111B-Dual...ryZ23792QQssPageNameZWDVWQQrdZ1QQcmdZViewItem
... and put some of it on your snare, lead vocal, and tamborine.
Use a good tube guitar amp. Don't use some piece of shit amp modeler. I would recommend a Peavey Classic 30 or a Fender DeVille if you're tracking mostly clean to mildly distorted. I'm partial to the Classic 30's but that's me. If you want something a little heavier, then I'd say Marshall JCM-800 or 2000. Rent something if you have to.
For Bass guitar, definitely run it in to a good bass amp and mic it. Use a Fender Bass Man if you can, but if not Ampeg is always good.
Good luck.
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