I currently am attending a 'recording school,' and most of what everyone's said has been pretty accurate, but...
One thing that a lot of people overlook about these schools is that they're not just about recording music. Like most of the other students, when I first came here I wanted to record bands for a living. You know, be a "producer." Obviously it's not a realistic goal for a thousand kids to have, and my school makes that very clear to its students, especially during the first term. So what they do is make us all take a class explaining this to us and also opening our eyes to all the different audio fields besides record producing. Since then I've been taking a much harder look at post production, and game sound, and live sound, and internet sound, etc. etc.
We've had various guest speakers from the industry come and speak to us, and none -- not ONE -- of them got their job due to skill or knowledge. Basically their speeches all went something like: "Yeah well I happened to know this guy who started this record company and I didn't really know anything at all about recording but he hired me anyway." Our teachers tell us as well, that (sadly) it's more important WHO you know then WHAT you know. Network, network, network.
So yeah, these schools may or may not get you a decent job when you graduate (it's about 50/50 here, probably like 20/80 if you only count GOOD jobs), but they do give you a chance to meet and work with people in the industry (internships are required), and a good amount of experience in the studio that some people just can't get where they live (not every town has a good studio). But what I think is the most important aspect of school for me is that I'm not focused only on being a record producer or recording engineer, I'm looking at other related jobs where there actually are job openings.
If you KNOW you want to record music and that's the ONLY thing you want to do, then I'd probably say pass on going to school. As these guys have said, recording studios don't care if you have a degree, with with that kind of money you could buy a whole truckload of equipment and do it the old school route (i.e. record bands and make your own connections and experience)
Hope this helps, good luck!
P.S. If you dream of working at either Hot Topic or Guitar Center, then recording school is the place for you. Nearly every employee at either of these places is a disgrunted graduate of my school. Something to chew on.