Greg pointed out a wonderful This American Life piece (real audio). Listen to the whole show as it will give you a sense of how the pros make it seem effortless. The Superman episode is wonderful and qualifies as art.
You can (and probably should) create family interviews and, with the surging interesting in podcasting, it might be fun to offer a real program.
Here are some high level recommendations. Lots of people use mini discs, lots of people use DAT. A few of the hard disk mp3 players have audio in, but most of them would need a good (adjustable) preamp and a monitor out to be useful.
A more entertaining and thorough guide is available through TAL in comicbook format. Outstanding and recommended.
It is much cheaper than video and can be easily as creative.