For interfacing with Vegas Movie Studio, the ideal camcorder would be a miniDV tape-based camcorder. (Although it's very hard to find these in stores, they can be found online -- and used ones work great and can be had very cheaply!)

For high-def, HDV tape-based video is ideal.

But the program can also work with AVCHD high-def hard drive camcorders -- although you'll need a very powerful computer (ideally a quad core or i7) to work with these very dense files.

I'd stay away from lower-end hard drive-based DV cams and pocket camcorders like the Flip.

I would like to record in Full HD.
Price - I would like to spend around $300.00 or a little more.
To import videos...Easy, I'm not sure if there are other ways than USB but if there are other ways I would prefer USB.
My main concern is the best picture, sound, stable video for my money. I don't really care too much about special effects on the camera, I plan on doing the effects. transitions etc.. with VMS.

The cheapest "ok" AVCHD camera is one from Canon, and costs about $400. But for $350, the only serious camera is the new Canon SX230 point and shoot digicam. It does 1080p at 24p, not 60i though (so it's going to be jerky if you pan the camera too fast). It also has 720/30p though/ Compared to the rest of the new Canon 1980p digicams, it features exposure lock, which is important to get a professional look, and 12x zoom. Sample video: http://vimeo.com/22776341

With Platinum 10, the 1080/24p of the SX230 is easily decoded on a modern PC. I can decode it in real time via Platinum 10 on my i3 laptop at 1.33 Ghz (U30 CPU model, ultra mobile version).

There are a number good-quality Canon digicams with full 1080p video at $200, but they don't have exposure lock, which in my opinion is a huge disadvantage in getting the best possible picture. Exposure compensation and lock is much easier to master than full manual control, and it gives you a better look than "auto" mode.

I got a JVC Everio HD which is now selling for about $325 or less. It records AVCHD on SD cards. Import is very easy; simply drag the .mts files from the card to your hard drive, then from there into Vegas.

Editing is very slow! That's the major drawback. Expect to spend a lot of time transcoding the files to .mxf or some other easier to decode format before editing, unless you have a blazingly fast PC.

If going High Def for $300, I'd suggest sticking to one of the major vendors such as Canon, Panasonic or Sony. Go AVCHD (it gets rid of the tape). But be sure to have a good filing system for the files! To make editing as smooth as you are going to get with HD (and being tapeless), I would suggest making sure the camcorder records in true AVCHD and not AVCHD lite or some alternative. Some Panasonics record in DD5.1, but some models have a problem with some VMS audio features if you want to render in stereo.

Thanks everyone for your help!! It will make shopping for a video camera
a lot easier!
Thanks again!!!!

Steve, Ihave an older miniDV tape based camcorder but the interface is a Firewire connection which I do not have (and am not seeing) on new PCs.
Are the newer mini DV camcorders now USB? Assume capturing is still "real time"?
So when is the VMS 11 book do out ?
K

You want to stick with FireWire capture for miniDV, Knockatoone. The USB Video Standard capture system turned out to be pretty much a big belly flop. With a FireWire connection, you know it's always going to work with virtually every video editing program -- PC or Mac.

If your computer doesn't have an IEEE-1394 connection, it's worth adding one for that reason alone. They can be had on Amazon for less than $20, and that usually includes both a FireWire card for your computer and a cable. At least on a desktop computer, installing a FireWire card is a breeze. You just screw it in and power up your computer and it's there!

Thanks for asking about the new book! It's in the works and we hope to have it out later this year.