I am also hoping to launch a film project at one stage. I think the most important element in any such project is a good script, but I think that thinking about budgetary requirements when writing a script would be somewhat counter productive, but in our cases we don't really have a choice. You will need to consider what locations, resources etc. will be at your disposal when you are filming and when you are happy with a script you will probably want to storyboard the whole thing, so you can plan every shot and work out how you are going to achieve it with a miniscule budget ahead of time and you will be able to see if the shot will work. Plan out what you need to rent/buy and ensure you have the money to do it and find some creative people who are looking for something fun to do, but for no money.
Quote: "I also strongly advise against green screen. The results never looks good. Think practical, think outside the box!"
I agree with this. I think chroma key can work for some things, but my philosophy is to attempt to make whatever you are trying to film, happen within the camera shot, so you are filming an actual event taking place (regardless of whether you are using smoke and mirrors, miniatures or whatever visual effects). I think it works much better that way because its easier to maintain suspension of disbelief if it is done properly. Lighting isn't screwed up, there are no Matte lines (I don't know if they are called that) an the whole thing looks more realistic.
I have been doing research into the topic of filmaking for quite some time, so if anybody is thinking of doing it, contact me on MSN and we can exchange tips.
Also don't fall into the trap of thinking that the amount of tech you have defines the movie you can make. Whilst in some cases this is true. Look at a film like The Exorcist and a film like AVP2. One is laced with CG visual effects, a terrible script and terrible acting, and the other is The Exorcist. Visual effects can't fix a bad film, but used correctly they can make a great film even better, but you don't need to have them to make a great film is the point i'm making.
In terms of matching a script to fit a budget, I am trying to think of some concepts that can be set mainly in a forest because my house is 2 minutes away from a forest and it has plenty of nice scenery.
Rant over

[EDIT] What camcorder did you buy, and what does it offer?[/EDIT]
Mnemonix