[davemc]

Also like here in Melb OZ, (wiggy and kev can correct me) there are what 3-4 large music studios around here that employees assistants.
Most other studios are 1-3 man operations that are skimping by and cannot afford to hire anyone.

There are two schools SAE and JMC.
I think a smaller one and other part time studies.
3 Tafe(tech school) courses
2-3 uni courses

So a lot of kids come out and go for jobs at the major studios which are already taken. So they try the smaller studios like my own. I say I would like to have an assistant but I am not paying anything until you can work on your own or bring me value.
2-5 mates bands after hours with no time constraint does not really count as real world experiance. They have put upto US15,000 in two year course and now they have to work for nothing to start off with, which does not sit well with most of them.
Its really a hard thing, a lot start there own studios but it is past saturation point here with small studios so they go under.
Working your ass off and hooking up with a better known engineer and paying him the $$$$'s sounds great idea. As long as everything is upfront what you are going to be taught, also you get your name on a few known credits to start with.