Hey UG.
I am interested in doing some cheap recordings at home.
Instruments used would include acoustic, electric and bass guitar, keyboards, bass and drums using an electronic drum kit.
Would a Line6 Pod Studio UX2 be suitable for this sort of recording or would I be better of buying a cheap mixer? I don't have a very large budget and would be looking at something cheaper than $300AUD for the interface/mixer. I am able to access a few mics for now but will be buying some of my own in the future.

Get a decent interface.
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^ the UX2 is a decent interface...

the biggest issue i see with the UX2 is no midi. and electronic drums are usually recorded with midi, i think. of course you could always record the actual drum sounds via the line outputs, but midi would be better.

just looking at a couple online sites, it seems like 300AUD is going to be comprable to 200USD. i think. which means i would recomend the m-audio fast track pro or focusrite saffire.

EDIT: ooooo, found someplace to check my prices (meaning here) and those are still the two i would recomend.