We just went through this very decision, since our camcorder died.
After a lot of research, we did wind up getting a HD camcorder, even though we don't have a HD television (yet). Just because the camcorder is HD, you don't have to use that setting, and we are currently recording in a format that is similar in quality to our old 8mm tape. When we upgrade the tv, we will be ready to use the HD function on the camera. Since everything is going HD anyway and the tv will eventually die too, it made sense for us to pay a little extra for that feature now.
The one we chose is by Canon and uses SD memory cards instead of tape or dvd. Memory is cheap to buy and is only getting cheaper. There are also fewer moving parts in a flash camera therefore, less things to mechanically break. Movies can require a lot of computer memory for storage - but we already have an external hard drive for the computer on which we store our digital pictures.
Good luck with your decision. Check out the on-line reviews of the cameras that you want and don't be afraid to order on-line to save some money. You might want to google the on-line retailer, too. We found that some of the on-line retailers with really cheap prices were scams. Thank goodness I followed my gut or we would be out the money.
