That would still be classed as low lighting IME.
I would expect you can get better than that yes but i still think you budget is a little low. Im pretty sure you would get better footage though for your budget.
How about a digital P&S camera that also does video? That might be a good bet.
Also, that clip looks bad because there was too much panning and zooming.
This clip was taken on my Nokia N95 by a friend in the audience and im quite happy with it but its not sometihng you would want to play back on a large TV.
http://www.blowup.pwp.blueyonder.co.uk/vids/wood.mov