recommendations for video camera

We are beginning to explore the use of videos in our training programs and are looking for recommendations of video cameras.  We have a very limited budget (around $500) for this purchase.  We want to be able to shoot good quality video with audio to be used in our training.  Does anyone have any recommendations?  What have you used?  What do you recommend staying away from?  We know that we will also need to purchase video editing software and are looking at Adobe Premier Elements.  Any recommendations for that (again think cheap)?

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