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What BV said. trv900. I've seen it going for as little as $1200. A $50 Firewire board is all you need if your computer doesn't have Firewire built in. It's just a file transfer - no capture needed. Do all mpeg encoding in software - it's slower but higher quality, sorta like rendering in 3D the software has more "intelligence" to create a higher quality file.
To see what the trv900 can do for output go rent a few DreamGirls: Real Adventures DVDs from Evil Angel. The trv900 is the cam the guys use. Joey Silvera also uses the trv900 for his EA titles.
One thing: if you use Windoze buy a Win2000 or XP box. These OSs can handle large files better than the 9x versions that need funky software tricks to edit files larger than 4GB.
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(o)Y(º) <- bad boob job
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