I agree... and disagree... If you can afford a studio, go for it. They can point you in a direction that you may not otherwise consider... as well as they might have access to gear that you don't have access to. I can also tell you that I have talked to a few people that have been in the industry for awhile and they have all told me that people go nuts over trying to make their demo the best quality that they can... when a record label listens to your demo... They can tell if you are a good enough band to sign. regardless of the sound quality. If your singer can sing, he'll sound good... if your guitar player can play... he'll sound good. So sound quality is really not that important to labels that are listening to demos. They've been around and they can tell a good act when they hear it. Besides, if you get signed they're just going to record you and make it sound even better with thousands of dollars worth of software. So don't stress the quality of the demo unless you have the money to spend on a pro studio. On the other hand... it is a must to make a good first impression.