You could even try to find a Super8 camera off of ebay, they can be fairly cheap, but you may have problems when trying to find a place to develop the film.
As far as cheap digital camcorders, go with any camera made by:
Canon, Panasonic, or Sony, I'd stay away from the others, haven't heard to many good things about other brands
but definitely make sure you will be able to hook it up to your computer so you can do editing
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Just listen to this sentence and tell me what it means. I haven't seen Evil Dead II yet? Would you get the impression that i wanted to see it? Oh, well you couldn't have been dying to see it or else you would have already gone. So in your opinion would I definitely see it?
How the fuck should I know probably!
Why? Because it's a brilliant film, it's so funny, and the soundtrack kicks fucking ass!
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