I was on Amazon and found one that would fill the bill but when I read the reviews one said that it was not compatible with a Mac.
I would be really surprised if that was the case. Could you tell us what camera this was?
I guess you are looking for a camcorder, not a still camera if you are posting in this forum. Because while still cameras can record movies and camcorders can take pictures, both are not really good at the other part (unless they are much more expensive...).
Camcorders come in all sorts of flavours. But I would suspect that a camcorder for less than $250 would not include an internal hard drive or anything fancy. Which means that I would expect it to be just like you guessed, with an SD card which you can just take out and put into your Mac.
The formats however are different from what most people are used to: You will not get a .mov or .wmv file that you can transfer and then instantly play and edit with any program. Most consumer HD camcorders now record in AVCHD, which is a stream-based format that includes metadata in a seperate file and not "just" the video. Still, AVCHD can be read with all editing software that I know of, on a Mac specifically the preinstalled iMovie.
If you don't want to edit your movies in any way but just transfer them, play them back and maybe put them online, AVCHD is a real pain and you might have to buy a converter software or maybe use several free ones. But if you want to edit them in iMovie anyways, you are probably fine. If you tell me the camcorder you picked out, I can check for you.
Also if anyone can recommend a camera that would fill my needs I would greatly appreciate that you post that information.
I know for a fact (because I tried it once) that
this $200 camcorder will work with iMovie. I did no research though how good it compares in quality.
April is a good time to buy camcorders, since most manufacturers release new models. That means that you can either get the newest stuff or (if you want to spend a little less money) get the last year's models considerably cheaper. Maybe you should look into that direction.
And again: If you post the model you picked out here, I'm sure someone will be able to tell you: Yes, this worked for me.

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Can you give us brand and model of the cam you saw? It's not always the camera that is incompatible... sometimes it is the user.
Hallo cgbier! I am back from Berlin and thus we meet again, answering the same questions in a similar way at the same time!
