I'm looking for digital camcorder. I'd like to find one that has:
1. easy analog to digital convertion (I have several 8mm / VHS tapes that I'd like to convert to dogotal)
2. camcorder that can take videos in .avi format (or format that easily get converted to .avi)
3. not so expensive (less than $450)

Please advise...

AVI isnt a format, it's a file container. It can be 200x200 pixels in 5 frames a second, and still be AVI. Also, a lot of people in the industry argue, MOV is more reliable. However, many amateurs insist that AVI is the best and only way.

I would just get an analog capture card for your computer to digitize your old footage -possibly Canopus?, and get yourself a hard-drive based AVCHD camcorder.

Chevypower , thanks for reply!
I was talking about avi format, as my DVD player can play only avi format. But I thing MOV is easily converted to avi. so MOV it's OK too.
Good hard-drive based AVCHD camcorders cost too much for me (about $900-1000 at least).
I would like something cheaper....

DVD players play MPeg 2 format. Get an analog capture card like Chevypower suggested and possibly a low end HD camcorder that uses SDHC cards. You can't get everything at top notch quality at your price point.

Just wondering if any of low end HD camcorders that uses SDHC cards or low end HD camcorder that uses SDHC cards support analog-to-digital conversion?

Got as a present Panasonic SDR- S7... tried to film indoor (with regular lignting)....quality is very , very bad, nuch worse that gave me analog video camera Sony 15 years ago.
Thinking to return it and may be get Canon FS100