If you're looking for a digital camcorder then you will probably have to get a firewire card as well.
They are less than $150. Or you can just use an analog cam and buy a video capture card. Will still cost you the same thing as the digital though so it's best to go firewire.
Most camcorders have pretty shitty still picture capabilities, usually no better than 640X480. Just make sure the one you buy does the still photos in "progressive" mode, otherwise they won't be of ANY use to you on the web, unless all you want to do is make thumbnails, as they will be blurry as fuck.
http://www.canondv.com/zr_s/zr25/index.html
The Canon ZR25MC is a decent cheap one that does progressive stills. Spending more will get you better quality of course.