Panasonic makes a nifty 3-chip camera for just under $600. I forgot the model name... I'll look it up.
Have you tried using whatever editing software came with your computer? If you haven't played around with editing at all yet, that could be a good (if simple) way to start. Get the knack of the basics before plonking down money on pricier software.
$30 tripod for steadiness... a cheap (but good) shotgun microphone... $40 for a small Home Depot lighting kit...
Someone was talking about microphones yesterday, in a thread... had some good suggestions. I'll try & find that link, too.
That's just under $800 right there.
Do you have a PC or a Mac, btw?
Edit: Here's that 3-chipper. Panasonic PV-GS65