earlier this year I finally bought a digital-based recording system after years of tape-based recording, on everything from a portable cassette deck to an 8-track reel to reel.
Here's my advice: go digital.
I bought a dedicated computer, sound card etc mostly because I felt like every time I wanted to change something with tape, I ended up buying a new recorder/format/media and dammit, I wanted something upgradeable. I don't have any experience with the various stand-alone hard drive recorders, but people seem to like them. I kept away from them because I can plug in a new card, hard drive, get new software, etc, until I'm recording wheelchair noises at the nursing home!
The other reason I went digital was the old "I wish I could hear what I really sound like" motive. One you are rid of the noise, crosstalk, hiss, and general poorer fidelity of tape, you are going to be amazed at the nuances you will hear. Before I went digital I used to secretly doubt the "golden ears" others claimed to have -- but now that I have digital gear and the music is not being masked by all the weird arifacts on tape my ears are turning yellow too. Using Audio-Technica 4033s in my converted garage 20'20' space, I have been astonished -- and disturbed -- by the differences I hear between takes when the mic was moved a couple of feet one way or the other when the musician went out for a smoke, for example.
It makes you better. You will find yourself becoming a perfectionist in mic placement, tone from amps/electric guitars, intonation in vocals etc etc -- just like "real" sound engineers have had to learn to do.
Of course, the downside would be what my father-in-law wrote me when his wife, a violinist with a string quartet, got a cassette recorder for recording rehearsals: "I hope they're not too disappointed."
But if we were that damn squeamish we'd never gotten past Amateur Music 101 anyhow.
In short, do it. You will be amazed.
I realize there are many people who love the sound of analog gear, and they may take issue with me -- but for the equivalent price points between analog and digital gear, there ain't no analog sound to love -- just hiss, noise, and all of the rest. Digital is the poor man's friend and if you're not a snob but someone who wants the best at affordable prices, this is it.