Someone will probably suggest this so it might as well be me.
Can I be really really really boring and suggest that before you go too far it might be worth your while investigating all the copyright and performance rights issues involved, to reassure yourself that the project is viable. If you have already done this then well done and please ignore what follows.
I do not know the answer to this as far as your project is concerned but if you know of another church that is doing a similar thing they might be able to give you some advice both on licensing and on the technical side. (Whilst advice from Head Office might be unavailable to you at the moment a representative at the national level of your Church might also be able to help you out as someone else must be already doing it.)
Here is a link to some advice on copyright licences that the Methodists have had to take out for day to day services and for out of main worship time A-V playback on the church's premises. The Church Copyright Licence seems to cover the recording of the hymns on the official register of licensed hymns for non commercial use and not for sale purposes. (But does it cover streaming live?) Presumably you will have to check that each hymn/song that is going to be used in a service is on the list.
http://www.methodist.org.uk/index.cf...tent&cmid=1552
Distributing it afterwards on Audio Cassette for the use of the infirm etc. of the parish is one thing but putting the same content up on the www might turn out to be another. (Even if the material is only accessible by password etc. by the very same infirm.)
Cricket23 I am sorry to be so so boring and I wish you well with your project.
ps You could always get the Vicar or equivalent to wear a radio mic, (with freshly recharged batteries and on a frequency available for use by amateurs.) Vicars etc. do tend to move around the stage, (pulpit, altar, front of house etc.) and so having a mic on them could help. But make sure you have plans to cover him/her with other mics should it fail or slip deep into their vestments!