I've been away from the computer for a while...
Ok, here's what I have to say about a compressor "on the way in". If Bruce or anyone else in the know has any corrections, please pipe in.
Let's assume we're recording at 16 bit ( a valid assumption given we're on a budget). If the recording is done without compression, it wil be necessarily more dynamic, since compression limits dynamics. Because of this, the signal will be fluctuating between low and high levels, with a good deal of difference between them. By compressing on the way in, the is more "usable" signal that goes into the waveform that is recorded, making better use of the available bits.
This is not to say that it cannot be further compressed in the mixing, but one starts with a healthier track to begin with. Most folks will say that effects should not be printed to the original track, but compression is an exception. A lack of compression is the common cause of the "why don't the vocals sit well in the mix" questions that frequently appear in the forums here. Take a look, you'll probably find two or three of them up right now.
This can be fixed with a plug after recording, but the noise floor will also be lifted.
I'd like to take a moment and also treat why we're looking at the NT1 as opposed to the SM57 for recording. It turns out the very qualities that make a dynamic mic (like the 57) good in live applications is its weakness in recording. Dynamic mikes (among other things) have a relatively small area of pickup. This is what allows them to be used on stage where there's so much noise around. This small pickup area makes it necessary to "eat the mic" even in a quiet location such as a studio. While its possible, its difficult to get a good signal into them without being affected by the proximity effect. The proximity effect is basically a preponderance of bass that sounds like you're eating the mic.
With a condensor mic, the pickup area is much larger, so you can back off, getting rid of the proximity effect, yet still getting a good signal to "tape". It is still possible to experience the proximity effect with a condensor (or any cardiod mic), but its easier to avoid.
Its definitely good to see that other budget recordings are getting a listen, its better to use a little equipment well, than to try and find solutions in a box.
For what its worth, I'm a fan of the voice channel solution, that you're looking at. I am running the DBX
silver series with
a shure KSM mic, and am pleased with how its going so far. Now, all I have to do is get my performance to match the quality of the signal I'm putting down!