Tom, What I'm gonna be getting for christmas is a different solution to those mentioned...Technically there's less you can do with it than some of the other methods, but it wins for me due to portability.
The solution is
this: A Tascam Digital Portastudio. It's basically like the old school tape 8-Track recorders, except it records to an inbuilt 40GB harddrive.
My setup will consist of SM57 --> Tascam, nice and simple. The downsides are that it can only record 8 tracks in one song, can only use 2 inputs at a time (wouldn't work for drums for example), and probably doesn't record to the same quality as direct to PC.
The positive elements, however, are that it can export individual tracks to PC (effectively overcoming the 8 track problem) which I believe could then be run through PC editing software (although I could be wrong). It also eliminates the need of your amp to be near the PC (which isn't possible in my house - key reason I chose this option). It also has Phantom power and TRS (guitar jack) inputs, so it can be used for mic or direct recording.
So yeah, that's what I'm gonna get, as it can be taken with me to uni when I go and it's just so much easier to my mind :drink: