The Song Fight Bulletin Board

I'm looking into upgrading my condenser mic (I currently am using the PreSonus M7 which came with the AudioBox USB bundle and which was itself an upgrade from the RadioShack dynamic mic I got in high school).

The Audio-Technica AT2035 has great reviews everywhere online that I've seen, and is priced at $149 which is perfect for a cheap-ass cheapo like me.

Does anyone have any experience with the AT2035, or have any similarly-priced microphones to recommend instead? Or, are the differences in recording quality such that I should pony up for a several-hundred-dollar mic, etc?

Basically, I'm looking for a good quality, not too expensive, multi-purpose mic, mostly for vocals, accordion, acoustic guitar and hand percussion.

Any input is appreciated. Thanks!

I have an AT2035 which I use in my closet studio. I like it quite a lot, and have recorded a number my SongFight vocals on it, like 43 Hours and Super Creepy. I also have an AKG C100S which is a small diaphragm cardioid condenser mic that I use when I go out to my car, where the neighbors can't hear me caterwauling. I use that the most.

The thing I notice most about the AT2035, is that it's very sensitive, which I like because I can sing quieter in my apartment and still be picked up nicely, but it also picks up every gross mouth sound and breath noise I make.

I mostly use an Audio-Technica AT3035 mic, which is no longer produced, but is similar in both appearance and recording quality to the AT2035, based on what I've heard. Chumpy mentioned the mic's high sensitivity - same goes for my model. This has its downsides, of course, but I like it. It's a great microphone for recording plucked nylon string guitar with low noise and without making it sound muddy, for example.
I have no experience with the AT2035 myself, but I would definitely recommend the AT3035. Actually, I don't think you can go too wrong with any Audio-Technica condenser mic, especially for that price.