I would suggest you go to the Sony website and look for their weekly deals. You can often find good HD camcorders marked down $100 which puts them in your price range.
Vado 2nd or 3rd gen (similar to the bloggie and other pocket cams)
I'd get either a Cannon t2i or for an extra 200 the t3i
Lighting is going to play a huge roll with cheaper cameras (cams in gen)
I've seen good quality video shot from a Galaxy s 4g that looks superb but the lighting is proper and the cam is on a mount.. Search Vimeo there are plenty of them around (videos)
Yeah this is the best camera but i am not using this camera i am a photogrpaher and i am using still camera Canon Rebel XT and this is good camera for make the family photographs and friends this is not for professional only family and friends photos....