I'll use the 1K USD capital for new websites/blogs and monetize them for more USDs. The ROI or return of investment is most likely to come back within a month's time.
I have never used a webcam to film my youtube videos. They are all done with either a Canon or Sony point and shoot camera and are done away from my computer desk. The camera I bought last week was a Canon D10 and it cost $360 US Dollars - tax included in that price. It takes pictures at 12 megapixel, films video in 640X480 and 30 frames per second and is water proof to 33 feet. My main forum gets around 3 million page views a month, has 691,893 post, 17,195 members and 4,507 members visit every 30 days. If you want to build a project, you have to spend the money. If you are going to do something, do it with style. Dont try to get off cheap, your visitors will see right through it. With buying a camera, if the website fails, you still have something. Its a material object that you can get other use besides for just internet stuff.
Spend 80% of them ($800) on the hosting, domain, design and content. Then spend the balance 20% ($200) on SEO