This week has been a great week for the budget film makers. With the announcement of the Blackmagic Cinema Camera at the NAB show, a new dimention is added in the flim making. The specs are absolutely phenomenal. 2.5 K sensor, Raw recording, 13 stops dynamic range, ability to mount EF Canon lens, integrated SSD, Thunderbolt port so that you can directly connect to your pc and start editing, compact size body, and so on. But the best part is the price. It has been marked as unbelievable $3k. On top of that they are providing a free full verson of DaVinci color correction software as well which alone cost about $1k . It just sounds too good to be true. 
This will definitely mark an era of the rise of budget film maker. With the specs provided, one can easily record a cinema quality video and edit on the mac book pro or any high end window laptop without any hassel. I am pretty sure that the DSLR film makers will me more excited with this news. The limited dynamic range and the heating issue in the high end DSLR like Nikon D800 and Canon 5D, Black magic is definately better option for the movie purpose. 
I am extremely thrilled about this news. I am pretty sure that more amaging products will follow shortly. Seems like finally the consumer market are getting some attantion besides Hollywood. Isn't this really exciting? What do you think?

http://philipbloom.net/2012/04/16/blackmagic/

http://www.eoshd.com/content/7927/the-downfall-of-the-big-guys-just-began-blackmagic-2-5k-cinema-camera-with-12bit-raw-for-3000

It shows the same shitty "jello effect" or better known as "rolling shutter effect" which has haunted all video cameras that are built with single CMOS sensor.

khaobaadi,
Its true that its CMOS sensor produces rolling shutter effect. But it doesn't look that bad after all. To an untrained eye, It just don't exist. But for that price what more you can ask. You can't compair this with Sony FS700, Red Epic or Canon C300. What I think is that this is more desirable than the DSLR for the movies right now. I think this is just the begining. More amazing products will follow the Blackmagic foot print. I am looking forward for "Digital Bolex" now. 

I find Canon's HV series (HV20, HV30 and HV40) video cameras (with 35mm DOF adapter) pretty attractive for this sort of low budget film work. 

 .....

Khaobadi, any recommendation on a dslr with good video recording option for under 1500?

Kiddo

D90 (850$ body only)  from Nikon is a reasonably good DSLR with movie feature but like any DSLR movie feature is primitive at the best as DSLRs are not built for movie. They just happen to add movie feature to entice costumers rather than to add any good value to DSLRs.

Here is a video shot by Nikon D90. This guy used DIY steadycam to get smooth motion.

 @khaobaadi

I dont recommand any one to buy Nikon D90 for video. First of all its already too old. As a matter of fact it was the first DSLR to introduce video option. It doesn't have manual setting for video and doesn't perform well in low light. Its true that DSLR are not originally intended for the video purpose but if you are creative enough you can get best out of it. Some footage of the movie "Red Tail" were shot using Canon 5D MII. Also "House" season finale was shot entirely using the same camera. There is one movie called "Bad is Bad" filmed by some amature film maker on vimeo which was also shot entirely using Canon 7D. If you have time, I highly recommend you to watch it. 

@Kiddo

There are whole bunch of option for your budget. I'll give you some list of DSLR that I think is best on that price range.
i. Panasonic Lumix DMC. 
ii. Canon 7D. 
iii. Canon 60 D.
iv. Nikon D7000 (replacement for Nikon D90)

Personally I think Nikon is best for the still pictures because of its wide variety of lenses but for the video, Canon is the best If I were you I would put my money on Canon 7D. If you are really serious about DSLR film making 7D is the best choice for that price. As I mentioned earlier, the movie "Bad is Bad" was shot entirely using Canon 7D. But if you just lookin to play around with your DSLR then go for Canon EOS t3i. It will do the trick. If you want to do you own research then check out http://www.dpreview.com/. Good luck.

Good information, rockey07.

I bought Nikon D5100 last year for around $1000.  It did a decent job of recording video, though no where close to professionals.  Still images were very very good.

I am thinking of replacing it with a newer camera, at about the same price point.  Please post if you have any suggestion.  Thanks.

I realize I never thanked the people who provided answer to my question on this thread.
So here goes, Thanks Rockey, Nepali American and Khaobadi.
Post if you have any other suggestion for a good DSL Camera for video recording between $1000 to $1500 (body+lens). I am zoning in on Canon Rebel 3TI right now as Canon 7D is a little too expensive.

wrong post