You want to get a mini-DV camera. The quality is much better, and it deteriorates less over time because of the digital error correction. Hi-8 and similar formats look like ass after a couple of years, and you can't do anything about it.
Some of the little Sony handycams are not bad.. small and they take decent video. If you're looking for a bigger, nicer one, though... I think Canon does some good ones, but they're probably above your price range.
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its not in the eye of the beholder, its in the eye of the beerholder.
-What