+1 on the Vanguard.
I have a tripod worth about $500+ (Manfrotto legs and head), but honestly the Vanguard VT-560 (now discontinued) seems to work as well if not better for me. I tend to prefer it over the Manfrotto, and it was available for something like $100 at the time.
A good sturdy tripod with smooth panning will make a big difference in the quality of your videos.
As to a good camera that won't break the bank, I use a Canon HV30 that records in wide screen and high definition. Great camera. It too is now discontinued, but you might find a good used one for a song and dance on Ebay. Just a thought.