Thanks Martin. The Tascam FW-1082 looks really nice and if I had the cash I'd consider it. I hope to upgrade to something like that shortly but what I need right now is the bare minimum. Do you have any suggestions as to brands/models of monitors and interface? I know the words 'good' and 'cheap' don't usually go together but if you know of anything close that would be great. Thanks.
As far as audio interface "in the hundreds" price range go, I have an Echo AudioFire8, and I am very satisfied with it. The frequency response and dynamic range are excellent in its price class, both for input and output. It's got an S/PDIF, which I don't use but since you mentioned DAT earlier... I'd take a look at Echo's product line and see if they have something that fits your need and budget (the AudioFire8 is probably overkill for you in terms of the number of inputs and outputs).
[Note: I should add that I am doing sound for video, not for music, so my requirements for a monitoring system are a little different from yours. You may want to run your selection by someone with solid music mixing experience to make sure that you are covered for your intended application.]
Now to the monitors. I am afraid I don't have experience with inexpensive ones, so I don't want to recommend anything specifically. You could take a look at this forum:
http://www.dvinfo.net/conf/forumdisplay.php?f=53 and do a search for monitors, but again, this is from people that do mostly video.
http://www.soundonsound.com is another great resource, looking at it more from a music perspective.
When you shop for monitors, I would think of it as a long term investment. Unlike a new computer or video camera, for example, a good monitor speaker will retain its value for a long, long time, and can serve you well for decades. The same is true for microphones. So with mics and monitors, I stretch further when reaching into my pockets than for any other type of equipment. When I first started, I bought on a tight budget, but soon realized that that was more expensive in the long run than if I had bought professional gear in the first place. I don't know your financial situation, and I know it's easy for me to tell you to spend a lot of money - it's your call in the end. But if there's only one item that you can really focus on right now ("focus" as in "spend money on"), make that item a good pair of monitor speakers.
- Martin