When the grownups do it, they have separate, soundproofed rooms and lots of microphones and an eight foot long mix console.
The reason they do that is to be able to customize each part of the performance for maximum benefit – in close to real time. You can do something similar, it would just take longer.
Capture one “sample” song, say three minutes and there’s nothing important about it, just that the song timing is perfect.
Send everybody home but the drummer. Move all the microphones and furniture moving quilts, blankets, and other sound proofing around so the drums sound perfect. Play the first song back into the drummer’s headphones while he plays and record a perfect, clean drum track(s). This can be rough to do because drums are hard to meter. They’re always louder and more overloady than you think.
Send the drummer home and call the other performers, redesigning the room and microphones as appropriate for each one. You’re going to find that guitars and other amplified instruments may sound a lot better with an electronic feed rather than trying to mic a 750W bass amplifier with a Shure SM-58. That’s almost guaranteed to beat the butterscotch out of either the microphone or the electronics right behind it. Fuzz Guitar whether or not it started out that way.
If you back the microphone up to avoid overload, you’re going to start recording the echos from the room. Much better have an electronic feed.
Vocals more or less have to happen together because you don’t have the eight-foot long mixing desk, but that too can be vocals-only with the rest of the show playing back into the earphones. Rearrange soundproofing as needed.
This is a composite of vocal recording info.
http://audacityteam.org/forum/viewtopic.php?f=28&t=10707#p43378
Doing production this way is very weird if you’re not used to it and it may take plunking on a “dead” guitar while you sing to give you the rhythm of the song. Obviously serious headphones are needed and for multiple people. You can get headphone splitters and borrow an amplifier with separate headphone controls.
Furniture Moving Quilts are a big deal. Suspend them about a foot or so away from the room walls so sound has to go through twice. You’d be shocked how much better a recording becomes with no wall echo and slap in the mix.
And leave time. You have two problems to overcome; getting used to each performance being an individual track and knowing when to stop. “My guitar riff sucked. I want to do it again.”
…and again…and again…
You were warned…
Koz