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Camera & Camcorder

i am thinking about getting a digital camera, but i'm not really sure yet and i need some opinions. which is better to go with, the digital camera or a 35mm camera? and what are the best models for a budget minded person like myself?($400 and under) also am planning on getting a camcorder. same questions with it, what one should i get for the money?(probably $500 and under)
For myself a digital is a better way to go as far as cost is concerned (no film to develop).I went with a Fuji 3.2mp digital camera about a year ago and it was about $324. It takes great pictures and has an adjustable zoom. Looking for a larger megapixel one before the next storm season.
I also use a JVC miniDV camcorder for the ease of importing it to the computer. It was only about $390. I still have my Hi8, 8mm and VHS-C camcorders but I prefer the miniDV.
Both the camcorder and digital still camera were purchased with budget and quality in mind. Now if I had a few thousand to spend I would have gone with higher quality units. Having a young daughter keeps the expensive "toys" out of reach for a while. :)
Hey Court. As for the camcorder anyway you might like the sony trv-19 for that price range($460 when I got it this spring). When the vid gets there you'll be able to judge any quality concerns. It's no 3-ccd cam for sure and isn't great on color for a non-3ccd cam, but it's pretty noise free for such a little cam. And that might be a concern as well. It's very very small(4.5 inches long I think). I wasn't happy with it at first but through the year it has grown on me, and it's hard to beat that price on a mini-dv.