For the confusion, I am coming from an HF-S20 camcorder and disliked its inability to provide a cinematic quality DOF. The film shot with DSLRs are becoming popular and have made it to big-budget movies and TV production.
I would like to spend (with tax) under 2,000. I am a novice and already feel I am investing a lot of money into a passion/hobby.
I am teacher who would like to take "stunning" footage for personal and professional (teaching) use. Capturing the protests for Occupy Wall St. was a big thing for me and I used my HF-S20 but if you look at how it compares to the DSLR footage of the protests it pales in comparison.
Having said that...
1. D60 body
2. 50mm F/1.4
1. another lens
2. a rode mic to mount on top for interview purposes and better audio
3. not sure...
Any further thoughts?
The 50mm f/1.4 is a great portrait lens on an APS-C body, but you won't want it to be your only lens. If you get your camera with one of the kit lenses, you should be fine.
One lens option that is a little wider is the Samyang 35mm f/1.4. Its image quality is reputedly superb, the only downside is that it's manual focus but that may not be such a big deal if you're using it for video (you don't have continuous autofocus in video)
While I haven't done any serious video work with my SLRs I've looked into it and read up on the topic. The predominant recurring themes are, stabilizing the camera (a tripod already mentioned is an inexpensive and effective way to do this) and getting the microphone away from the camera body internals if you want good audio.
I'd be inclined to keep the camcorder. I recently got a 5D mark II and will still keep my budget camcorder. There are some things a cheap camcorder does really well that a DSLR struggles with -- such as staying focused on a moving target.