I've had pretty good luck using a combination of room mic's and direct.
At the moment, I've got a Tascam 414,
a Fostex Dmt-8vl, a Sony stereo hifi VCR, and a Teac 2 channel reel to reel. In the band, the PA head and the bass head are Peavey's, both have line out capability. I also have a stereo compressor / gate, and dual 15-band EQ in rack units.
What I do is use the T-414 as a mixer, with 3 room mics - 2 SM-57s, one of which is set up to look down over the drummers left shoulder (drummer is set up in the right side of the room) the other 57 is set up on the other side of the room, about equal to the drum side mice, and a Rode NT1 at the back of the room. Then I direct line in from the bass and PA. I take the stereo mix out to the reel - reel. Note - I used to use the VCR, but found it is much more sensitive to levels setting, and as it has no Vu meters of its own, it's hard to get the levels right - and when they're too high, the distortion sounds like digital overload distortion - crappy!!
On playback, I run the tape out thru the compressor and the EQ into the Fostex hard disk recorder. This has all the digital editing stuff, so it's real easy to chop out the start of song counts and stuff like that... just lay down a patch from tape without fussing about start and end points, and then trim to taste later. With the digital at this point, I know I'm not adding any color, and I can concentrate on the mix and ride the levels so it doesn' distort.
At this time I don't have any reverb unit to add in, but the back of room mic is getting me some depth, the vocals have rev on the line out, and my guitar amp has a touch set in. All in all, this set up has worked quite well, and a number of tunes recorded have made it out to the compilation CD's put together by some of the musicians forums that I participate on. Oh yeah - another nice thing about
the Fostex Dmt-8 is it goes light pipe out to a Pioneer stand alone CD recorder - so once i've got the mix, it stays digital out to the CD, without any more D-A or A-D conversions.
long, but.... hope that helps some
B-H