I picked up a Canon HG21 in December - it might be a bit out of your range (was $950). So far, I am quite impressed with it (never having owned a camcorder before) and the video quality is very good (I created a dVd for some friends and they were blown away by the video quality).
You might want to look at the Canon HG20, which is the same as the HG21, but with a smaller hard drive (60GB as opposed to 120GB) - I saw it for around $700 in December....
A good site to find reviews etc is
http://www.camcorderinfo.com
Good luck...
EDIT: prices have gone up a bit...here is a link to the HG20
http://www.thecamerastore.com/produc...0-hd-camcorder