I have done a lot with video and my Mac and let me tell you, there is nothing more fun on a computer! You can really get reeled into camcorder shopping with all the bells and whistles, but you will never ever need them. Given this, you can get a great camcorder for $500 or less. Besides, all the effects you need or want are in iMovie or FCP if you graduate to that (and if you get more involved in video, you really have to do this to really do all kinds of interesting things). I would still recommend a camcorder that uses mini-DV tapes. Burning right to DVD and mpeg formats isn't going to help you if you want to edit on your computer. A camcorder with mini-DV tapes writes DV files, not compressed mpeg files. By a cheap tape rewinder to save your camera's motor.
Do some research online and find a few cameras with good reputations for reliability and quality. Then go try them out. Find one that feels good in your hands. Try the zoom - can you control it? If not, go to the next one.
You really can't go wrong with some of the Canons or Panasonics. Sony is always a good name, I have one, and though they have slipped in reliability, I have had zero problems. Also, look for cameras with standard sized lens mounts for filters. Alas, my Sony has a weird size thread and I paid through the nose for various filters and add ons.
Digital zoom is worthless. Trust me, what you will find you want is the exact opposite of zoom - wide angle and more more more.
Shooting indoors is tough. Hardly any consumer camera can handle these low light conditions without adding tons of grainy grain. Various lights that attach to your camera are lousy and eat batteries to death. I you can set it up indorros, use regular cheap lamps from a hardware store and white cardboard to diffuse and reflect.
Finally, you will find online prices way way below everyone else and you will be very very tempted. There is a whole world of shameless onlline camera theives out there. THey will sell you cameras without lenses or batteries, never ship your order, never call you back and worse. Most are in NY and they are scum of the earth. You can read all the horror stories online, but please please please just trust me on this. Buy your camera from a local store or Crutchfield, but nobody else online.
Good luck!