What's a good digital camera/camcorder?

I would like a good digital camcorder that also takes decent stills. What is the best storage medium and what is the best mid priced camera (under $500)

Regarding storage media, which will work directly on either a VCR (with cassette converter) or a DVD player?

There is no such animal.

The resolution of stills shot using a camcorder is quite low when compared to even the least expensive compact digital camera.

You may have to just buy a decent mini-DV camcorder ($300) and buy a decent compact digital camera ($200). Both the video and stills will be better than if you attempted to use one camera to do both.

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