Cheap Shot: Buy a $30 one-time use digital camcorder from CVS.
Mod it. Now you've got your own digital camcorder for $30.
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To use as directed, you buy the camera from your local CVS drugtstore, shoot your video, then take the camera back to CVS. They keep the camera and give you a DVD with the twenty minutes of video. They charge you $13 or so. Not so great a deal, really.
But mod the camera, and you're set.