Finding a camera with that much optical zoom may be a chore. As for the mini-dv tapes, that's the way to go. They record broadcast quality video and the format is recognized by most video editing software. I think you just limit yourself in too many ways with the mini-dvd's.
Not sure about the memory stick thing, but my Canon GL-2 does have that feature. But then, it's a little more than a $500 camera too.
My hunting partner has a small Canon (don't remember the model) that takes excellent video and also has the memory stick feature. I think he paid in the neighborhood of $400 for the camera.
Trailboss
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