I think to follow the steps below would be a good way to start.
1) Start a roll call who would participate
2) let each of them post a list of the songs they would be interested in
3) after everybody sees what other people are planning to do, give them the possibility to change their choices
4) see who wants to use a backing track and who wants to use their own instruments
5) check who has the equipment and ability to 'produce' the tracks. (for example: would it be possible for somebody who isnt a tech freak to just record the vocals and have them mixed with the instruments by someone else)
if we actually get that far, we can see how to continue then...
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