I picked up a Canon ZR500 back towards the start of this year, for about $240. As long as you've got light, it'll give you a good picture.
Why the ZR500? I was on a very tight budget, and it has a mic input, which was lacking on some other budget models I looked at. A quick look on pricegrabber shows that it can be had for 223 + shipping right now (
Look here). Pretty good deal - especially considering if you get yourself really hooked on video, you'll want to replace *any* $300 cam you buy right now down the line
It fared pretty well against the other budget cams in it's price group, scoring high marks for resolution, and better-than-the-rest for video performance.
http://www.camcorderinfo.com/content/Canon-ZR500-Camcorder-Review.htm
I was worried about buying it, especially after their comments about the wrist strap and bottom loading. However, in use, it's never really been an issue - the strap is sufficient for how small the camcorder is, and it's not too often that I find myself taping an event that needs more than 60 minutes of tape. If I did more often, well, I'd probably have use for a more expensive camcorder.
I've enjoyed it, but use it as a consumer... so my view on it doesn't take in to account manual controls or other goodies that prosumers/pros would want/need. But feed it light, and it can produce some decent footage, IMHO.
<edit> Oh, and the standard battery (which suprised me with how small/light it was) lasts longer than a tape... which is convinient. If you need to change tapes, you know you can get a battery change in there as well w/o the camcorder dying first...