You should be fine with what you're wanting. I can try and do a short feeding video on my D7000 real quick to show you what you're in for, not sure I have the time tonight unless I push right now. . .
but yes, it does handle video great, ISO capabilities are great, audio is junk though, will need an external mic but thats about 150 for a nice Rode mic added onto it. If you're coming from the d80, the difference is going to be mind blowing in performance. If you want to stick with Nikon, I'd say go ahead and pull the trigger. You'll be happy you did if you're not interested in spending that extra grand on an FX body like the D600. . .