[dba-Tech] Movie Maker etc.

A friend of mine wants to make an Internet radio show which ideally would
also have video and which would be improvised -- a multi-media blog as it
were. I know nothing at all about how to do this. We have a microphone and a
silly little webcam thing, which I suspect is not up to the task. 
What do I need hardware and software-wise to enable this? A digital video
camera, presumably, plus the existing mike. What will record both, and what
will be the output file, and would it be streamable? What stuff do I need to
do this for my friend?
Arthur