Hey Eggdude
I got a couple of suggestions for you however the more kit you have access to the better your finished product will sound !

The cheapest way is to persuade a friend to come along and, with a pair of head phones running out of the computer and a mike hooked up to the same computer, find the optimal spot for the mike in the room whilst you are all playing together and then record stuff.

The next quantum leap is to get each instrument assigned to its own tracks and then edit / mix them down.

This is difficult with out the right kit.

Do you know how to DI stuff ? This is where you plug an amp or a guitar straight into the desk / computer interface without a mike. This is especially cool, as you do not have the problem of bleed through (that is drums getting onto bass / vocal / guitar tracks).

If you can DI the guitars and bass (things like Line 6s POD are great for this) all you really need is a headphone preamp, enough headphones for everyone and you are set !

You can then record the drums live using a set of mikes with the guitars and bass plugged into a desk (maybe via and effects unit or two) or the computer audio interface.

This way everyone can play at once and everyone is in time.

I would then lay down the vocal tracks after the backline is sorted

Equivalently you can opt to overdub and tighten up one track or another later