Canon T2i, with battery grip.
Setup to accept SD cards with Magic Lantern video firmware (it's awesome)
    -I'll include an 8GB card with ML loaded.
Tamron 17-50 f/2.8 lens

Body: $450
Lens: $350
Both: $750

I'll also throw in a 7" Haier portable TV (used it as a field monitor for video) and a shotgun mic for whoever buys the kit.