I've just ordered one. After quite a bit of research I went for a Panasonic NV-GS120 which is a 3 CCD machine. It's quite reasonably priced in the US but sadly we're getting screwed somewhat in the UK. From what I read in various reviews the Canon camcorders still have great lenses but also still suffer from picking up drive noise with the on-board microphone. Apparently the new Canons don't have mic-in sockets either so you're stuck with the dodgy on-board mic. The Sony camcorders are fine, very compact etc but camcorderinfo.com didn't rate the HC40 very highly - in fact they said the Panasonic camcorder was better than it in nearly every way - apart from the Sony has a better LCD and image stabilisation. The budget Sony HC20 is a good price though and although loses a few features, still has the basic core features you'd need.