You seem to have a pretty good setup for recordings, as I remember. Certainly it is my dream to have something similar to yours!
A decent recorder like Edirol R-9, Zoom H4 or Tascam DR-1 will get you a ways. Though recording an upright s probably more challenging than a grand. You may want to try removing the front boards to get a full sound.
This piano has quite a good sound, actually, and is probably just as good as some lesser grands out there.
What I did, starting from a suggestion of Alexander's (who seems not to be around too much of late) I turned the piano away from the wall, so that I have my back to the wall and the back of the piano faces the room and, whenever I record, the recorder. I then open the lid part-way (I use a wooden divider that I found in an upmarket wine case). To make it easier for me, I place the scores on the top of the keyboard lid (and use an architect's ruler to keep them from falling behind), so that there is nothing to get in the way of the hands.
This is good for the piano, as it keeps it from any humidity there might come from the wall.
Having a large living-room and high ceilings makes reverbation not so necessary.
The only thing I notice is a tendency for the right channel to be louder, so that I need to reduce it a bit to obtain balance.