My recommendation is the classic Canon Optura. It was one of the first Mini-DV camcorders offered in the late 1990s to fill the growing demand for better quality consumer cameras.

At it's most basic, the Optura was an entry-level XL-1, the main difference being the single CCD and a fixed lens system.
It shoots 30 frames progressive (interlaced is a menu option), is switchable between 4:3 and 16:9, has a mic input, headphone output, S-video output, Firewire in and out, LANC support, remote control, and a load of manual settings that you can scarcely find on a mid level HD camcorder today. It also has a 49mm thread on the front for filters and lens accessories.
Something really unique is the hot shoe up top that's made to drive a Canon movie light, or get this; a flash since the camera has a stills capability (albeit not a great one)
It's got about a 2 1/4" LCD and a full color viewfinder, optical image stabilization, and with enough light, produces some stunning footage.
The best part, although it cost close to $3000 back in the 90s, you can pick up one from Ebay usually in nearly new condition for around $100. I've bought 4 since 2006 (don't use them much anymore) and the only problem I've encountered was the screen going out on one that I dropped. I've never paid over $150 and have bought them as low as $75
If it shot HD I'd still be using one
Since it sounds like you aren't fussy about jumping into HD right away, you'd be hard pressed to find a camera with more features out of the box than the old Optura, particularly at the price point. For learning the ins and outs of shooting, lighting, and sound, it's a rare opportunity to get one of Canon's best for nearly nothing.
Rather than this thread turn into a retro "which camera is best", I'm just tossing out my thoughts and personal experience with the Optura, so take it for what it's worth, but I think you'd like it as a teaching aid.
Neil
If government is the answer, the question must have been WTF?