If you can find the November 2004 edition of Consumer Reports (CR) they provided a comparison of a variety of brands...mainly digital models. If you can't find one in the store you might try either your local library or pay a small fee to access the information on-line with Consumer Reports.
Their quick picks for a digital camcorder included:
Sony DCR-HC20 $500
Sony DCR-TRV260 $350 also listed as the
BEST BUY by CR
You want to be cautious of not being drawn into buying a very small pocket-sized camcorder since their analysis found their performance to be less than satisfactory. They cited the Panasonic SV-AV50 as an example.
I'm not sure night shot is still around (to the same technical capabilities as before) since if was often used for other purposes other than what it was intended...during the daytime shooting at people making some specific clothing "sort of disappear." It did allow us to take some nice shots of the kids sleeping in the crib.
Here is the brand repair history:
(fewer to serious problems, based upon feedback from over 37,000 consumers)
DIGITAL
1) Sony D8
2) Sony MiniDV
3) Panasonic MiniDV
4) Canon MiniDV
5) JVC MiniDV
FEATURES TO SERIOUSLY CONSIDER:
1) LCD Viewer size (2.5in) and clarity (larger is better but more $$$)
realize view screens wash out in bright sunlight so ensure the regular viewer eyepiece meets your needs and provides the comfort you expect.
2) Full auto switch
3) Quick review
4) Video light
NICE BUT OPTIONAL
1) Long Zoom Range (10x is adequate, when cameras use digital zooming it is achieved at the expense of image quality)
2) Audio/video inputs (used to make copies and displaying)
3) Microphone
4) Still image capture
DON'T FORGET
When you purchase a camera you need to remember the additional expenses to complete the camera
1) Tripod (eliminates shakey videos like you find in the Blair Witch Movie)
2) Extra Batteries
3) External microphone (This is the only way to get good sound with a handheld camera)
4) Camera bag
5) Lint free lenses cloth along with lense liquid cleaner, camera head cleaner
Try the camera out in the store and evaluate everything:
Ease of Use
Picture Quality
Image stablizer (compensates for vibrations and shakey hand)
Weight
Optical Zoom
Types of Controls
View Screen size
Check out the eye piece (important since most of the time outside with sun you will be using the eye piece)
Battery life
Extra battery cost
recharrge time of batteries
Playback
Image Quality
Wide Angle and Zoom
Image quality at max zoom
recording media cost
I have a Sony TRV model and it works fine and the cost of batteries and recording media continually comes down in price as more and more people enter the digital recorder market.
I would note the CR BEST BUY recommendation would also allow you to complete an entire camera set-up and still be under your $500 dollar budget. Just realize, buying a camera is like buying clothes...it has to fit you or you just won't use it. Try out a bunch of cameras and you will find yourself knowing exactly what you want.
Good Luck.