Yeah, for in-car work look for something with a wide angle lens and 1/4" threaded hole for easier mounting.
If you're going to film outside of the car, the camera obviously needs to be able to handle the abuse and be solidly mounted.
There are cheap wide angle lenses available from Amazon that are easily adapted to different cameras and they help quite a bit.
Aiptek and other companies make cheap, lightweight HD digital camcorders that work well and record to memory cards.
To record HD content you need a fast memory card with a lot of storage space.
To edit the HD content you need a decent machine and a video editor that can handle HD video. Microsoft's latest Editor is free to users of Vista and 7, but you need to have 2gb of RAM and a 2.4ghz processor with a decent video card to even run the program.
If you have vehicle or timing data that you're capturing, then you can use RaceRender, which is a relatively cheap program to combine them along with multiple camera angles, etc. http://www.racerender.com
Finally, it really is all in the editing:
http://www.youtube.com/watch?v=Be22PMX74lA
I wish I even half as good (although the music is annoying when watching the cars, make note: Racing videos should always strive to use the ambient sounds of the cars, not music.) BTW, I drove for car #87 in this race and the Corollas were our teammates.