What equipment would I need to do a you tube video?

OK. I was thinking of doing a video of me playing guitar and singing a song.

I tried using my Laptop, and also a Cisco Flip video cam I bought. The video of it is ok but as far as audio, they both suck. The audio sounds like I'm singing and playing from a mile away.

Is there something else I can do with what I have or an inexpensive set up or cam I can get so that both come out good? and I'm not talking top of the line quality.

Thanks.