New Family Needs Suggestions

Hey guys,

I recently found out that my girlfriend and I are having a child, and one of the first things that came to mind was how terrible the shooter on my phone is. I'm looking to spend no more than $650, really, as I'm no pro photographer, but with all these relatives between her family and mine, we'd certainly love some shots worthy of being blown up, framed, etc.

I read the camera buying guide that The Verge posted, but I still have a lot of questions. There's going to be a lot of low light shots, and I'd appreciate decent audio/video capture. Something loud enough to hear and not blurry. Size isn't too terribly important because I'll probably just carve a place out of the baby bag for whatever we end up picking out.

Looking forward to hearing from you guys. Thanks.