Yeah, forget DVD go DV or HDV. If you want a great camera for the price, get yourself a used Sony VX 2000 on ebay. They are not HD but the picture is crystal.
Here's one...
http://cgi.ebay.com/Sony-VX-2000-Mini-DV-3-CCD-NTSC-Video-Camcorder-16x9_W0QQitemZ190176201711QQihZ009QQcategoryZ20333QQssPageNameZWDVWQQrdZ1QQcmdZViewItem

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Current Stable:
01 ML55 AMG
92 500E (a few mods)
87 300E (lots of mods)
00 Chevy 3500HD Diesel Box Truck
68 18' Donzi Marine
06 GT i-Drive7 1.0 Mountain Bike (with GPS!)

PREVIOUSLY OWNED:83 300SD, 87 420SEL, 88 420SEL, 90 420SEL, 86 560SEL, 86 190E 2.3-16V AMG, 94 E320