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I have a newer Canon (HG30 I think...). It was about $600 at Costco.
It does have a 60 gig hard drive but you can also use flash too. Takes awesome pictures and excellent video. It's quick to power up and start recording. I would say better quality than sony for indoor shots. One of my previous jobs I was a backup on AV and we used a couple of Sony's for recording presentations.
I think it's a good option before stepping up to the $2/3k plus pro models.
Another thing to consider is software. Each brand is bundled with different editing software. You might want to check that out and see which you'd like better.
Unless you have your own software and thats moot.
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