I've since moved away, but I was in a band called Dynamo Go back in New Zealand. We released an album for free in April this year:
Drums were tracked in a pro studio using protools, then the rest of the album was recorded using Ardour and UbuntuStudio with LADSPA plugins. The final master was done by somebody else using some other software.
We had done a couple of EPs and had been pretty unimpressed by the immense financial risks we had to take in order to get a distributor on board - having gone down that path previously and having had to work exceptionally hard just to recoup our investment, we released the full album for free, based on the fact that it involved zero upfront investment and lots more people would hear it. It worked out pretty well. It still gets half a dozen downloads a week, last time I checked my webserver stats.