I remember I was looking for something like that myself. Your best bet in that price range is a GoPro, despite its purpose being for sportsy stuff
Pros: Damn good quality, wide range
Cons: No flash (video looks like shit with it anyways), camera interface - a bit annoying
The video footage I've found for that camera looks really nice. Exactly what i need. Just above my budget though. Might just save for it unless anyone has cheaper ideas with as good quality.
A t3i Body can be had on ebay in the range of your budget.. It's the best offering hands down for the price range. 3x zoom feature in video mode eliminates moire.. No other rebel does that. Port magic lantern and you now have focus peaking, zebras, audio levels, increased bit rate etc. Very best hands down.