No. Digital recording wouldn't work better in this case. Yes, it IS very time consuming finding the right levels and stuff. Let me guess: You have the mixer and the tape recorder in the same room as the musicians? That way you have to mix "In the blind" since the sound of what you are recording is mixed with the sound of the instruments, so you can't really hear the mix. What you need is a way to only listen to the mix, and not the instruments, while you are mixing. This can be done in two ways:
1. Build a studio, with a control room and a control room windows, and, well, it's bloody expensive anyway, so forget that.
2. Multitrack-recording. That way you record every instrument separately, and you mix and pan and filter them afterwards. This is WAY cheaper.
Then you arrive at the next questions:
A. Do you want to record all instruments at the same time (gives a nice live feeling, and is not as booring for the poor musicians) or can you do them one at a time (cheaper recording equipment).
B. Do you have a computer around that you can record with? (Other people know better what the miniumu requirements are. Pentium II 200Mhz, 64MB of memory and one gig free of HD space is my guess.)
C. What and how many instruments are you using in your ensemble?