A lot of cameras are actually high quality, but when people put them into YouTube or other online video players people don't have them resized correctly so the pixels get really messed up when they're put into youtube's video player, they come out scratchy and cubed. I didn't know if you knew that or not, so please don't hate if you already knew that.
Look at like a Sony handycam, cheap and should have good quality.
$600 range on cannon or something should be good.
Your best bet is to go into the local electronics store like Best Buy or Cicuit City and just look at all in your price range and make sure you talk to employees and spend a lot of time looking into it and tell them EVERYTHING you are going to use it for.
A good editing program with all the basic features along with some really good features would be Adobe Premier Elements, I think the latest one is Adobe Premier Elements 7. If you have a Mac, final cut is amazing and really easy to use, that's what I've heard, I've never actually used the program though. I have Premier and it is VERY GOOD. Also, more RAM on your computer helps a LOT when in an editing program.