Okay, I'll give a suggestion that's a bit different. Since budget is a primary concern, but you're still wanting it to be good quality and better than a webcam: a small digital point and shoot camera.
The point and shoot I currently use is a discontinued model (a few years old now), but it does great for simple movie clips. It's the Samsung ST200F. I know you can't get it anymore, but I'd look at the comparable replacement. These (below) all do 720HD video at 30fps. They are in the 16mp to 20mp range for photos themselves, so you can take great pictures also with them. Personally I like one with bigger 'digital' zoom. You have to look specifically at that, not 'optical' zoom so many try to tell you. Optical is just cropping in, so you lose resolution. Digital zoom does so with the lenses, so you can still keep your full megapixels.
I don't own these, so be sure to read the reviews, but they are all pretty good rated. And from what I scanned in the reviews, everyone seems to agree the video quality is good. So, read them and make up your own mind.
They don't have the ability to attach an external microphone. But on mine I know from experience if everyone in a 15'x15' room is talking in a normal voice, it has no trouble picking them up on audio. If you talk quietly, then you have to be closer.
It (mine again) does great in lower light conditions, and motion from people walking around. Video looks sharp and clear. I will say mine has a 20 minute time limit per movie clip. But you can just press record again to keep going for as long as your card has storage space.
Now to be clear, this is not in the same league as a good quality DSLR. But then again, neither is the price. I do consider it way better than a webcam. It allows for the complete freedom to move it around to different locations easily without a computer being attached. And honestly I think it records better video. Same rate as a good webcam, just the colors are much richer.
For $90 to $110 you're not going to find a better video making device.
Sony DSCW830 20.1 MP Digital Camera
Kodak PIXPRO Friendly Zoom FZ53 16 MP Digital Camera
Nikon COOLPIX L32 Digital Camera
Sony DSCW800/B 20.1 MP Digital Camera