We purchased the Sony Handycam Digital Camcorder at Target for $399.99. I have seen it at Best Buy and Circuit City for about the same price. It is a good camcorder, easy to use, nice and compact but does have a couple of features I do not like.
First, the good - Not only does this camcorder record videos, you can also use it like a digital camera, not just one way, but two. You can purchase a Memory Stick Duo to capture still shots. You can also save any frame from video recording to a jpeg, creating an image that can be printed. I have not tried to capture still shots but I have saved a frame from a video and it produced a very clear photo. Other features I like about this camcorder is the fact that it is lightweight and compact. It also has a 40x zoom to get great close up shots. The battery is easy to charge, which is a good thing (see below). With included software, you can download your videos to your PC. Also, the mini discs are very inexpensive.
Now, for a couple of things I do not like. The battery only lasts about 30 minutes. When I am on vacation, it is very likely that I will want to record more than 30 minutes a day. Yes, I could buy additional batteries, but I would need 4-5 batteries to get the amount of time I would like. Also, the camcorder produces videos in the MPEG2 format, which is NOT compatible with Windows Movie Maker.
Overall, I do like this camcorder. It was great price and has already allowed up to capture priceless memories. If you do buy the Sony Handycam DCR-DVD108 Digital Camcorder, you might want to pick up a couple of extra batteries.