How serious are you about this and what are your intentions? youtube vids, practice vids/audio? Do you want to tweak each of your mics in a separate track? do you have a computer to use, can it handle the work load, software?
You can get decent results with a 3 mic set up, 2 overheads and a kick mic, leaving you more money for mixer/multi-track recorder and whatever else you need. It adds up really quick. Micing an 8 pc can get up there.
Without know more details many people recommend the Zoom Q3 HD, it's around $300 new cheaper used on ebay or your local classifieds. Take decent video and audio for such a small gadget. do a search on youtube for it, lots of examples.
But if you are anything like me and you want to buy once and get it done with then you really have to do your homework and determine what it is you really need.
Mics-
Look at the Audix DP series, a little pricey but highly regarded. Sennheiser e604, Shure Beta series or PG series. So many to mention but these come to mind.
Kick- Audix D6, Sennheiser e602 or e902 ( <----- I think), Shure Beta 52, AKG D112
Overheads- Audio Technica 4040, 2021 (I have the 2021 not bad for the price but not the best out there, does the job) The above mics mentioned usually come in kits with overheads. Rode makes some killer mics too so check them out.
Snare- Shure SM57, Audix i5, most popular among drummers, Though I experimented with my Sennheiser e604's and they give good results too.
Audio Interface-
Presonus Firestudio/Firepod,-Very popular, firewire and comes with Studio One, I think it's called. I've been thinking of switching.
Zoom r16/r24 (I own the r16, does a decent job, portable works on batteries and u can mix everything on it if you desire or use it as an interface connected to your computer and do the EQ in your DAW (DIgital Audio Workstation).
Maudio has some great stuff, I think it's the Profire 2626 that comes to mind.
Tascam US-1641 comes to mind as well. but just search the companies for what you need.
Software- Really depends on your needs and platform, some notables
Garageband, free with Macs
Studio One, free with Presonus firestudio/firepod
Audacity- Free
Logic express/pro (I use express, more than enough for me)
Cubase 6 (various versions like LT, Artist)
Ableton Live
Pro Tools
Anyway, I think that's some info to get you at least researching and comparing cost. you probably would get more bang for your buck buying used. I got all my gear for less than your budget and I'm very happy with it so far. But I'm only micing a 5 piece.
whew! I think that's my longest post ever! hahaha!