I shot a low budget web series last summer using 3 hacked GH1s, Rode video mics on cameras and a couple of Sennheiser wireless lavs recording to a Zoom for audio. You can see some of it here: [url=http://www.inthedriversseatonline.com]www.inthedriversseatonline.com[/url]. So don't be afraid of using a hacked GH1 or GH2! Both are available at pretty good prices.
I have recently been using a Zoom H1 for audio. It is an excellent option at a reasonable cost (about $100). Combined with a Rode video mic placed just out of frame you get quality audio recording without the hassle of lavs.
A no-frills option for lights is to build them! You can use easily available parts (I went to Lowes). A cheap multi-light bathroom fixture ($18 for six sockets), a plug, and a half dozen 100w-equivalent fluorescent bulbs (daylight balanced), a couple of broom storage clips or clamps, and about 20 minutes of time will get you a 600 watt fluorescent soft light. Use a couple of black foam core sheets for spill control and you are in business for under $50 per light. (Clamp lights with the 100watt flo bulbs are also useful and cheap.)
Hope this helps!