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software program for mini dvd camcorder


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newbie geek

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For the past months I have been looking at mini dvd camcorders, having had a sony hi 8 and editor in the past.
Am quite astonished now that it is a major issue to get a hot show for a zoom microphone, lest you pay $2000 + and then I have people tell me NOT to buy an mpeg mini dvd camcorder b/c the quality is poor.

I have been using my hauppauge win tv pvr usb 2 to transfer videos from my vast library collection of classics to dvd via Ulead Movie Factory 4 and have been pleased with the results.

Now I have been told to look only at the tape camcorders that mpeg format is not good even if I purchase Wombles.
I am really confused about what to do b/c I don't want to buy a camcorder that is up there in price to get a decent "lux" and then find that I am really disappointed in the quality of the dvd that I create.

All I really had planned to do at present was buy a mini dvd camcorder and record 1 hr per grandchild since the parents don't have the cash to buy the cameras and then transfer it to a 4.75 dvd so there is some history of each of them in their growing years. Just as I used my Sony Hi 8.
I was told Wombles was the only program that could do a half decent job, however I know nothing about Wombles, nor do I know anything about the other mpeg software available.

Or am I making a wrong choice in selecting Mini dvd over the tape camcorders??

I hope someone can unravel what has become confusing to me...AVI vs MPEG 2 and software???

Thankyou.
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