How do i go about making a Music Video for you tube???

[The girl next door]

I have a nearly finished track i would like to put on Youtube,the Love parade is on in Germany next month and i want to do one of those vidoes just filming poeple dancing and stuff (Not steven spielberg i know)
The quality doesn't have to be amazing so i need a Video camera for around 4-500 quid and I’m abit broke after forking out for my new SE Code8.
i need to get myself a mini video camera that can record .mov or .avi don't i??
which format is best for youtube???
Any suggestions on a Video Camera??
I then need to put it all together with my track.
I have a copy of Sonar6 so maybe i could do it with that??
I am totally new to this so all help appreciated..

Thanxxx Nick