I'm pretty lucky having easy access to a professionally set up studio which has some excellent gear in it, plus, I can work in my apartment with the arranger (and anything else I may add) as all my recording work is done through headphones (with playback on a set of Yamaha monitors if needed) and recorded direct to the Tyros4's HD and then sent to PC so all is in the digital domain.

I don't use microphones at home as my work is all instrumental so I don't need soundproofing...just a nice comfortable chair and a pot of tea on the stove.

I suspect most home recording is done the same way; in the digital domain. However, it's also easy to turn a closet into an isolation booth for vocals if necessary...I've seen some real neat ideas and setups over the years.

Studios get pricey when booths are needed for drum kits, or acoustic instruments like grand pianos...also mic'ing Leslie cabinets, and guitar amps requires a certain degree of isolation.

Ian