While poking around at Rat Shack today, I came across this fantastic frugal find. The Shack is clearing out their stock of the Sanyo Xacti CG20 HD video camera, my choice as the best entry level video camera you can buy. It has a ton of manual features, shoots a decent picture (for this price point) and even has a 5x zoom lens (no mic input or headphone jack, however)! Normally they run around $140 online and this price will save you over fifty bucks.
If you are looking for an inexpensive camera that is perfect for web video, you'd better run (don't walk!) to your local Radio Shack to see if they still have any in stock. You can use the Shack's website to check your local store's stock online. I don't know if every store is clearing these out, but you can easily check for stock, then give them a call about the price.