There are a couple of options: Your natural surrounding or purchasing and using a Backdrop.
The Lighting: The more light the better! I recommend Cowboy Lighting and there are a couple of tricks to setting it up so that you avoid any harsh shadows.
The Camera and Microphone
You're going to need a tripod. Do not try to balance your video camera on a stack of books! The investment is small and you can easily find it on Amazon.
For your camera, there are lots of options to fit any budget. I've put together a camera review of some of the better options in this video:
For your audio, I strongly suggest a lapel mic; however, if you need something a little less expensive you can find a mic for as little as $20.
Tip: Remember to unplug anything that your mic will pick up and create that low "humming" sound in your video!
That's It! I hope you enjoyed this video studio tutorial!
0:54 Step #1: Your Backdrop
2:10 Step #2: Your Lighting
2:50 Step #3: Your Camera and Microphone