if your just looking into a handy cam, the flip mino just came out with a new hd model. haven't tried it but i have the non-hd one and it's quite convenient plus it has a pop out usb connection
I'd suggest looking into some DSLRs like the Nikon d90 or the Canon T1i. They are priced around $1100 for the body and a lens. Plus they take really great photos too.
I have a canon mini dv. Records on a tape. Easy to transfer to a computer or watch on tv. Was cheap and I dont have to worry about ruining it by getting it wet.