I'd wait a bit before getting a new dv camera. Yes, the technology will always improve, but right now there's a big push to go HD. I bet within a year you'll be able to find cameras that shoot at least in 1080i. If you can wait until you can get one of those kind of cameras, do it. Otherwise, go to a pawn shop and get a one-chip or even a three chip. I know there are those who would bombard you with technical jargon until your ears bleed, but at the price range you're at, I wouldn't be so concerned. I got a Sony PC100 five years ago. It was considered to be quite nice (and expensive). Now they use that kind of camera for Dogma films... Although, I'm still able to get a decent image out of it, considering it's a one-chip.
Most mini-dv cameras are at least a three-chip, meaning that they have three sensors measuring red, green, and blue, meaning a better color rendition than a one-chip.
I guess most importantly is, do you have any good ideas? Have you written anything? Have you worked with actors before? Because all the technical know-how won't amount to crap if the content isn't there. I just finished "working" on an indy film in New York which was shot on a Varicam (they were originally going to use a Sony Z1 and shoot in 1080i, but the DP bitched and so they got the Varicam). The Varicam shoots in 720p, and at best looks like 16mm transferred. At best. And I don't even want to talk about the script. So, my advice before even getting a camera is develop your ideas, get your actors working, then get something to record it.