Where to begin?

Let's start with the camera.  We're dealing with low budget filmmaking, and that means digital camcorders.  Here are some important things to look for when purchasing a camcorder.  First, you have to know how the camcorder is going to connect to your computer.  Make sure the connection is compatiable with your computer, as you may need to either find another camcorder or purchase additional hardware to get the footage you shot onto your computer for editing.  I made this inital mistake and ended up having to spend $150 on an adapter.  Secondly, you want to ensure that the camcorder has some sort of microphone input.  This is especially important with camcorders that record to tape or onto dvd because the sound of the motor will end up on your film.  By having a microphone mounted away from the motor you won't have to deal with that 'extra' sound once your film is shot. The microphone input will give you a great deal of other advantages, which we can discuss later on. Anything else that your camcorder can do will be great, but this is a good place to start.  Something as simple as a Creative Vado, http://www.creative.com/myvado/, will work good for quick and simple shooting.  In the middle price range, Canon's VIXIA line of camcorders are excellent options.