I was hesitant to answer because I am no expert in this area, but I have owned a Sony MiniDV DCR-TRV19 camera for a few years and am very happy with it. I seem to remember it cost around $500 or so. MiniDV is a digital format, so you can transfer it directly to your computer and its ready to burnto DVD. It has night shot (night vision) that works pretty good, and it uses Firewire to transfer to the hard drive. It came with software, and I have also used Microsoft MovieMaker (free online last I checked). I used all of this to build a DVD of my Sons soccer season, and had several hours of video captured on a 30G hard drive. I was able to cut and edit scenes, preview, overlay soundtracks, and use some special effects (like slow motion) with the Movie Maker software. Buring the final DVD took several hours, but once it was done it turned out nice. My computer is nothing to brag about, Pentium 3, 833 MHz, 70G hard drive.