This is what I can recommend for you whether or not you go with my suggestion on brand/model, definitely check out the place.
Abes of Maine- Great place I dealt with when I got mine. I got the Sony DCR-HC42 Mini DV camera and love it, it's easy to use, even my wife figured it out! It's Mini-DV so the picture quality is digital tape and looks great! Comes with good software, and there are some good accessories to be found for it.
Stick with the Mini-DV rather than those that provide the DVD disks themselves, from what I understand, there's compatability issues with the DVD models, and the blank media is much more expensive.
As for the company, I really appreciated the technical help they gave me on the cameras I was looking at, very knowledgeable and didn't give me any high pressure sales pitch. Definitely check them out, you'll save quite a bit of cash instead of going down to Best Buy/Circuit City where you'll probably deal with some eager 19 year old who knows more about World of Warcraft or Civilization games than any of the products he sells.
Good luck.