in reply to Mattress!:

I use the Cannon 550D (http://products.noelleeming.co.nz/search?af=&login=false&items=1&w=Cannon+550D), which is around your price range and should fulfill any course requirements from your photography class. The sound from it is good but could be a lot better so you might want to buy a cheapish boom mike as well. The 550D is also incredibly user friendly unlike the Cannon 60D, which I had a miserable experience with during last years V48 hours film festival.

I agree a DSLR may well suit your dual needs and budget.

As Big Kahuna mentions, sound can be a problem with DSLRs as they're notreally optimised for sound (although are much better than they used to be) - definitely get one with an external microphone input socket. Then again, that's good advice when buying a more traditional 'video' camera too :)

For a limited budget of $1500 I'd avoid DSLR and get a standard HD handicam.
A handicam is dedicated to video and usually has decent enough image, sound, easy media format etc. A DSLR is for photography. Some do video too but only as a second thought. You'd really need a bunch of accessories to make a DSLR useful - which will cost you a lot more.
The only advantage to a DSLR over a handicam is changable lenses and the ability for a really shallow depth of field (if you can afford the lenses).
You'll also want a decent tripod, a good case, possibly an external mic, and don't forget an editing solution.

Mikedensem sums it up nicely.

Which will, of course, require a retort.

DSLR is the next 'logical' (note quote marks) for HD shooters. With some time and experience it is a viable option for next step shooters.

I'd recommend a Z1P or camera of type, (feel free to throw your model/names into the hat here, its a bun fight right now).
Also a good shotgun mic, a boom, some great closed back headphones, a solid, silent tripod, a reflector and a ton of story.

Good luck.

DSLR has a lot of complexity that can be awkward during a shoot. If you want interchangeable lens, then the Sony VG10 or VG20 is an awesome starting point, if a bit above the $1500.

Something like the Z1P is also a very consistent, easy to use and reliable workhorse.

For your $1500 though - the CX1100e shoots surprising good footage for $700

Spend another hundred on a UV filter

and for CROM's sake get a half decent off board audio recorder and microphone like this one http://www.globalmediapro.com/dp/A037W5/Tascam-DR-1-Portable-Digital-Recorder/ $~500

That leaves you $200 to get some headphones, an extension pole from mega as a boom, heaps of duct tape and a few pizza's :D

There ya go

You know what, for $1500 I'd almost be tempted to get an iPhone 4s and pocket the change. heck, you can even EDIT your video on the iphone 4s with this app, as well as have manual touch focus and exposure controls, and zoom:

http://i4videocamera.com/

Not that it's actually the best video option you could get for your money, and it's not the best option for sound recording, but DAMN if I wasn't impressed when we tried out the above app on my bosses iphone...

Someone will probably do an entire V48HOURS on a iphone this year, shooting and editing....

Anyway, the original poster shouldn't take my post too seriously because of the sound thing... But it's scary how good camera phones are these days.

Get a cheap HD handycam.

DSLRs are fiddly as hell and, as mentioned above, require a lot of work/accessories to make them a complete solution.

I'd say get as cheap a camera as you can and use the leftover money to get some sound gear - at the very least a mic you can plug into your camera. Bad sound is way more grating than cheap-camera footage.

But that's frequently the problem - cheap handycams _usually_ don't have mic input sockets. Worth having a look around though, you might find a cheapish model that does. I totally agree that you need an external mic if at all possible - few on-cam mics are any good.

We call on-camera mic 'cigarette butts', for obvious reasons.