I've been wanting to make video blogs for a while now but I'm not sure what camera I should use - a normal computer webcam or an actual video camera?

The Flip camcorder is a really nice one that is really small and great to carry everywhere for spur of the moment videos.

http://www.theflip.com

Honestly I would just use a normal computer webcam! Maybe just a better quality one! Maybe also one that has a built in microphone!
Walmart has a Microsoft Lifecam selling for $26.82! 
Specifics are:
With simple setup and one-touch calling, this Webcam makes it easier than ever to see and hear your friends and family over the Internet. It captures video at 30 frames per second for smooth results. And it offers 640 x 480 resolution for both videos and still pictures. Additional highlights include a built-in microphone, universal attachment base and flexible six-foot cable.

They also have the Hercules Dualpix HD webcam that sells for $32.88! 
Specifics are:

• Photo capture up to 5 megapixels in interpolated mode
• Video capture up to 1.3 megapixels
• Burst mode: take up to 20 photos with 1- to 5-second intervals between each shot
• Delay mode: set up time delays of up to 10 seconds between shots
• Easy transfer and conversion: just one click for automatic file conversion to iPod video, PSP, vlogs, blogs, emails and specific PC folders
• Digital 3x zoom (automatic or manual)
• Traveling Zoom function: this unique function automatically tracks your face and even enlarges the field of view if there is more than one person with you
• Instant-messaging functions: high fluidity thanks to USB 2.0 (up to 30 frames per second)
• Integrated microphone and headset for a complete audio and video solution
• Compatible with all IM systems (Skype, Yahoo, AOL, AIM, Windows MSN); Windows Live Messenger included
• Lateral rotation of 360 degrees, vertical rotation of 60 degrees for an enlarged field of view
• Lateral rotation of 360 degrees, vertical rotation of 60 degrees for an enlarged field of view
• Universal foot screen-fixation system
• 1.8m USB cable

Next is a really cute cam, the iHome MyLife which sells for $39.88!
Specifics are: