How Would You Go About Builiding A Recording Studio And What Equipment Do You Need?

There are several ways to go about building a recording studio.  First you have to decide are you building a commercial studio or a home/project studio.  A commercial studio would be one that offers recording services to bands and other groups for a fee.  Home studios typically are for those who want to record their own music projects.  Both of these are completely different in setup, design and cost.  

A commerical studio cost anywhere from several thousand dollars to several million.  As far as what they are equipped with depends on the amount of money.  Here's a sample list from a modest studio in Manhattan, NY called Nordberg studio:  

Recorder
1 Apple Macintosh Dual 1.8MHz G5 2.0GB RAM 500GB Storage
1 Digidesign ProTools Digi 002r
ProTools 6.9
1 Motor Mix Control Surface
Reason
Digital Performer 4.0

Preamps
1 Avalon VT-737sp
4 Digi 002
1 DBX 386 Stereo tube pre
8 Presonus Digimax pres

Compressors
1 presonus ACP88 8 channel compressor
1 Alesis 3630 stereo compressor

Outboard Effects
1 Alesis Midiverb II
1 Lexicon MPX 100
1 T.C. Electronics M300

Monitoring
   Mackie HR824 Studio Monitors
   Studio Headphones

Microphones
2 AKG C-414 B-ULS Matched Pair
1 Neumann TLM 103
2 Shure SM-58
1 Shure Beta-52
1 Shure SM-57
2 AKG CS-1000
2 Audio Technica Condensors


Midi
Reason
Symphonic Orchestra Sampler
Bosendorfer 290 Grand Piano Sampler
Drum Kit from Hell 2 Sampler
1 Radium 49 Controller



Instruments
1 Yamaha Upright Piano
1 Fender P-Bass
1 Acoustic Bass
1 Fender Telecaster Electric Guitar
1 Fender Stratocaster Electric Guitar
1 Martin D-16 Acoustic Guitar
1 Gibson J-45 Acoustic Guitar
1 Takamine Acoustic Guitar
1 Epiphone Mandolin
1 Lapsteel Electric Guitar

Instrument Amplifiers
1 Line 6 PodXT

Booth
A 4' X 5' soundproof Whisperroom.

As far a home studio I use a Yamaha AW 1600 workstation and a few audix mics.  The AW 1600 has all the capabilities to record, mix and burn straight to CD.  It's also works great with my computer and digital keyboards.  I got my home studio set up for about $2000 and I can produce decent music from it for a fraction of the cost.