Is there any Digital SLR Camera out there that supports video recording?
- Only Nikon (Or may be Canon, in case there is a winnable alternative)
- Entry Level (less than $700 or Rs.40,000)
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12.3 MP DX Digital SLR, HD Video
nice alternative to the very expensive D90.
the next 'smaller' model, D3000 doesn't feature video recording, so the D5000 is your best bet.
edit: if you don't mind Canon, then get the EOS 500D, the far better camera, pricing is similar to the Nikon D5000.
The Nikon D5000 has what you might want, but it's a hair over $700 (it's $725 on the official Nikon site):