Compact/DSLR/Camcorder/Bridge for budget video series.

Hi everyone, I'm after some recommendations for a new camera to record some short videos. The videos are to be pretty simple, just filming one person speaking to a camera, typically not moving about too much, but often filmed outside.

I'd love to stay under £500 - I'm after a degree of quality that ensures that any technical hitches aren't distracting, not looking to impress with my production skills themselves yet! (this is very much a novice project to develop some video material for my blog).

I can see that filming with DSLRs is in vogue - my current model (Nikon D50, clearly stills only..) is probably ready to be upgraded, so could be a case of two birds one stone? Otherwise, I have no qualms with camcorders, especially as the kit might be shared with the less technically minded.

Also, as there will be quite a bit of outdoor recording, any recommendations on getting decent sound quality would be great (and if this requires an external mic, either a lavalier or camera-mounted one).

Thanks!