Ya know...this might be overkill...but you might consider one of the Dell Axim Pocket PCs. You might be able to get one for 200 bucks...and you could also use it for all kinds of other things too...from taking notes to writing lyrics to...well...keeping a tally of who shows up to practice on time

Anyway...I have one of these and love it (mine has wireless). I've never tried recording live music on it...so I can't attest to it's quality...but it sure is convenient...and has a headphone jack too. Makes a great MP3 player as well...I have several memory sticks with all kinds of stuff on them.