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Large diaphragm and condenser mics
Tube preamp
The right microphones will do you so much good (even with less-than-perfect gear otherwise), it's not even funny. I would recommend some decent initial spending there, and make your improvements over time on the rest of the stuff.
Edit:
Good headphones, some with "super isolation" and some that let in some sound from the outside
Cubase has been OK for digital recording for us, but mostly we have been using 1" tape lately
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