I am specifically asking vinods-ga to answer:

I do piano/viola improvisation and would like to buy a Mini
Disc/harddisk recorder that directly records to mp3 or wma format on
the fly.  also need recommendation on type(s) of microphone to buy
that's suitable for instrumental recording in a room.

eventually i will rent a studio but now only have access to regular
piano practice room.  do you know of any cheap noise-reduction
microphone???

price range for equipments is about $300

please ask me for any clarifications, thanks!