I created this video as a PSA. It used a light kit that I created for about $50 and a SD video camera. I used the built-in microphone. I used Windows Movie Maker as the editing tool. I filmed everything in just one take so that simplified the editing process. I added a title and an ending. I did all the setup myself, so it was a true one person production.
This is the studio setup that I used. Here you can see that you can convert any space into a recording studio.