Andy,
I have a Sony TRV-17. It’s a MiniDV camcorder and it’s great. This year’s model, the TRV-18 is less expensive.
Go to http://groups.google.ca/groups?hl=en&lr=&ie=UTF-8&oe=UTF-8&group=rec.video.desktop to search the rec.video.desktop newsgroup. That’s where I did my research when shopping around for a camcorder.
You may also want to consider the Canon ZR series. I think they are at the ZR-45 now. From what I had read, it was almost as good as the Sony TRV series. The only diff was that he Sony’s performed better in low light. That may not be a hard rule, though.
Unless you get a great deal, I would stay away from anything other than Sony or Canon. Again, this is the consensus I found on the newsgroups.
As for still pics, don’t expect much. The resolution for pics on my TRV-17 is only 640x480. And because there is no built-in flash, pictures indoors pretty much suck. You can buy a camcroder light/flash from Sony for about $200 or so. It’s worth it if you film indoors a lot.
Keep in mind that there are two ways to get a still image when using a digital video camera:
1/ In “still camera mode”, tell everyone to say cheese and click the capture button. The image is saved onto a flash-based card (eg, Memory Stick, CompactFlash, etc.).
2/ In “Video” mode, simply videotape like normal. Then, we you transfer your footage to your PC, simply “grab a frame”. Since you’ll have thousands of frames to choose from, you should be able to find one that looks good.
There is no difference in the quality of the image between method #1 and #2. The only way #1 would be better than #2 is if you added that flash from Sony. Then, when you press the “capture button”, the flash would light up the people and the picture quality would be a lot better. But, w/o that flash, there is absolutely no difference.
Hope this helps. Good luck.
P.S. Also check out http://www.dvspot.com for camcorder reviews. They have a neat feature where you can compare three models side by side in a table.