#1
So for my birthday i want to buy some good recording gear.

Right now i have

http://www.guitarcenter.com/M-Audio-MXL-990-991-Recording-Mic-Duo-and-M-Audio-AudioBuddy-Package-703626-i1173655.gc

im thinking about either buying a sound card, or maybe a 8 track recorder.

i want to know which will give better sound quality(i dont need studio quality, but decent quality would be nice) and how i should set up whatever i purchase for the best quality

ill be recording guitar, bass, vocals, some horns and maybe drums, and i can spend about $300
#2
What kind of drums? Normal acoustic or electric? If anything, a used FP10 may be exactly what you want...just up the budget a bit more. And don't forget microphones and stands.
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#3
You won't get anything great for $300 when it comes to MTRs.
I suggest sticking with the audio interfaces and running a desktop or laptop.

The FP10 is ideal for drums if you are talking acoustic sets....Even if you only have a set of two mics. It's nice to be able to expand later with more mics.