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MANUAL SETTINGS. Whatever camera you get look for these key features:
Digital Format (miniDV or D-8. miniDV is proabably easier to work with at this point and there are more options)
Firewire in/out and if possible analog out for making VHS copies.
Manual settings. You want to be able to manually control as many things as possible, but especially focus and exposure. Manual white balance is a big plus, or at least preset lighting settings.
An external mic input. Most consumer/prosumer cameras have an on camera mic that is only useful very close up.
Lots of people look for low light capability. This usually makes use of gain and results in that grainy look.
For small cameras image stabilization is helpful. A flip out monitor and extra battery are great. You may also want to invest in a monopod (about $30 for a decent one.) You can really make use of one of these. Twist the head and rest the rod on your shoulder and your little camcorder becomes a shoulder mounted cam. Hold it high on the neck and you can get near steadicam type shots with a light camera.
That's just some info. I have a camera I use for professional stuff, but my vacation camera has most of these features and I find them useful when I need to use it as a main camera because we are shooting in small place or public area and do not want to draw attention with a bigger camera.
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