Look, if you're just doing this casually and recording other friends for some money to cover expenses so you can get experience, then you work with what you have. The moment that you start charging REAL money, I agree with Mikeh completely, you need 16 tracks(channels) minimum and 24 would be preferable. You also are going to need really good mics, processing, monitoring, editing, high speed burning, etc. And a GREAT engineer.
I just came back from a rather long and grueling recording session in a real nice commercial studio. They mic'ed the 5 piece kit with 8 mics:
3 Sennheisser 421's on the toms, an old AKG D12 on kick,SM57 on snare, a pair of AKG C3000's as overheads and an SM81 on hi-hat. They had a massive Scorpion board (over 30 channels) about 4 large racks of very impressive pre's, compressors, efects, you name it. They record onto digital audio tape,send to pro tools afterwards and burn. It was a "live session" recording wth a drummer (me), a sax, bass, piano and a vocalist. Seperate isolated drum room and an isolated vocal booth, bass was DI, piano and sax were close mic'ed. The producer paid $75.00 per hour for all of this.
The engineer (the most important piece of recording equipment) was top notch and a pleasure to work with.
This will be what you're competing against. This wasn't even a "major" recording studio, it's a rather "run of the mill" but good studio. No fancy waiting lounge, just a couple of soda and snack machines.