For studio recording, try some Crown CM-700 condensor mics. They are cheaper than the Shure SM-81 and EXCELLENT for percussion! You can sometimes find them on eBay for around $150.
For live work though, I think the CM-700 might be too sensitive and prone to feedback, at least it was when I tried it. Instead, I use a Shure Beta 87a ($100 if you shop around) or a EV N/D967 (maybe $125). The EV's are actually vocal mics, but work well for hand drums and have a huge gain before feedback which is always an issue when playing live. Both the Shure and the EV are supercardioids, which will help with feedback and other instruments bleeding into your drums. I'm not as crazy about the sound of the Audix D series, but they also work well and are nice 'n small.
Soon, I'm going to try some piezoelectric transducers. No mics, no mic stands, no feedback, no leakage, no holes in your drums, no fooling around. And cheap! These are just little ceramic disks that mount to your heads (or nearby) and turn the vibrations into a tiny electrical signal. The signal has to be fed into a very high-impedance input though, at least as high as your mixer's "instrument" input, but ideally into a piezo preamp which has an impedence of say, 3 to 10 million ohms. Around $60 for a single transducer and simple preamp. Has anyone tried this approach? I'm not necessarily recommending Shadow, but they do have some info on piezos here:
http://www.shadow-electronics.com/start.html