Check out the Canon HV20. 30 and 40. It is an HD videocamera that uses mini DV tapes. I like the DV tapes myself because they are easier to archive and has just as good if not better picture quality as a hardrive based videocamera. Very good picture quality for the pricerange. They don't make the 20's and 30's anymore that i am aware of, so you would have to go used if thats what you want. I got my HV20 for $400 refirbed from Newegg a couple years ago. I have maybe $1000 in the camera, shotgun mic, wide angle lens, tripod, camera arm, extra batteries, and other misc items.
I couldn't afford top end equipment and this HV20 has done me well.