go for Sony HDR-SR12 camcorder. It produces best quality video with your budget ($599 + some tax) in US. It has 10 MP digital camera as well. Sony is the best in my experiences with some digital cameras and camcorders. I recently got this one http://www.digitalsaver.com/stores.asp?productid=HDRSR12&gclid=CM-Un63uk5cCFRKLDQodJUZgbg