OK, lets look at software first. You will need a multi layer program. One that allows you to stack overlays of effects, CGs (Character generator) and Lower Thirds. This will also have layered audio track so you can have the sound track/music, natural sound and voice over all controllable with different volume levers to get proper mix. I edit with Premiere Pro 2.0 from Adobe. There is also Finale Cut, and Sony Vega. All are excellent editors and will easily do everything you need and more.
As for Camcorders, you will need one with a mic input, preferably a XLR, for a higher quality audio than what the “on camera” mic will give you. Get a hand held and a shotgun mic for interview, narrations and nat sound (natural background sound). The Sony DCR-VX2100 and Canon GL2 and XL2 are great cameras. I use the Canon XL1. For a look at what BestBuy has in the Pro range visit bestbuybusiness.com.

If you still have a functioning camcorder, then check out the Dazzle from Pinnicle Systems. This is device that bridges between analog devices and the digital world allowing you to capture your video on the computer. You than can edit if required and burn a DvD.

We have this item available on line at BestBuy.com. Orders Usually leaves our warehouse within 1-2 weeks.

Almost all camcorders have a photo ability. The quality is not as good as digital Camera. Also, some digital cameras do record audio/video. The quality is designed for internet sending. Looks good online, not on tv. These are also VERY limited on the amount of time that can be recorded. It is best to try several models at your nearest BestBuy and decide what looks best to YOU. My rule of thumb is "Video Camera = BIG VIDEO..little picture. Digital Camera = BIG PICTURE....little video"