The basic attributes to consider when purchasing a camcorder are
Firewire/IEEE 1394 support
Lens Quality
LCD Size
Optical Stabilization System
Digital Still Image Capability
the first attribute (Firewire support) is absolutely critical. Never buy a digital camcorder that does not have Firewire support . The other attributes like lens quality, LCD size and optical stabilization are nice to have but should not matter if you are just an average home user.
The last attribute - digital still image capability - gives you the ability to shoot pictures just like a digital still camera. I personally think there's no need for this feature, as it jacks up the price tag way too much. I'd prefer to get a basic videocam and a proper digital still camera separately if I want to both shoot videos and take still pictures.
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