The picture quality of HD (1080i or 1080p) is clearly superior to SD (720x480 or 720x576 resolution) – though you do need to view it on an HD TV or computer.

We recommend getting an HD camcorder as most TVs sold are HD, and it will ensure you have the best picture possible. If price is your biggest variable have a look at the lower-end HD models in our test as their picture scores are still higher than the best SD models.

Camcorder formats

There are several different memory/format systems for camcorders, each with different strengths:

Flash memory

Flash (or solid state) memory is used in a lot of digital devices, such as iPods and netbooks. Flash memory can be made incredibly small and light and doesn't have any moving parts. This means it's not bad if you accidentally drop or bang the camera while filming. While the capacity of flash memory is getting bigger everyday it's still currently smaller than a HDD.

HDD (hard disc drive)

These record to built-in memory inside the camcorder, usually 30GB to 120GB. This means you won't have to change tapes or DVDs while recording. A 30GB hard drive allows around 7 hours of high-quality recording or around 37 hours on low-quality settings. You can then copy this to computer or DVD.

Memory card

MemoryStick Duo, SD, microSD and miniSD memory cards can be used in some digital camcorders. These cards are small and light (an advantage), but are costly compared to other formats.

On a 4GB memory card you can record around 50-60 minutes of top quality footage, or 3-5 hours of lesser quality. For HD recordings, you'll get significantly less.

Older formats

DVD

These record on 8cm (3-inch) DVD-RAM, DVD-R(W) or DVD+R(W) discs. Since there's no tape to wind, it's easy to find scenes again after you've recorded them – and there's no risk of writing over existing footage. Virtually all DVD players will play the 8cm discs for easy reviewing.

On the most economical low-quality settings, a DVD can store about 60 minutes of video, but only around 20 minutes on the best quality setting. For high definition (HD) recordings onto DVD you'll only get about 15 minutes onto a disc.

Mini DV

One of the most common camcorder systems. These use a small cassette (not much bigger than a credit card, but a little wider). Most Mini-DV models have two audio tracks so you can record music or a voice-over as well as the original sound. You can choose between standard or long play mode – long play mode can affect the sound quality, but the image quality is unaffected. On the highest quality standard setting, you can record up to an hour of footage. A 60-minute tape costs about $10 for standard definition (SD) or around $40 for HD.

Footage on mini-DV cassettes can be copied to a computer or DVD recorder using Firewire. Mini-DVs are less user-friendly than DVD or HDD for menu navigation and cataloguing your clips – fast forwarding and rewinding can be a pain.

Older formats

Micro MV

This digital system uses cassettes that are much smaller than Mini DV ones, and different data compression. The two systems aren't compatible. Micro MV doesn't support long-play mode, and only has one stereo audio track.

Digital-8

This records onto a largish D8/Hi8 cassette in a digital format. A standard tape will hold about an hour of high-quality footage. Many Digital-8 camcorders can also replay analogue movies on old Hi8 and 8mm tapes.

Features and functions

Digital camcorders come with a bewildering array of specifications and features – some really matter, others don't.

After choosing the format you want, think about the features and functions you need, and make sure the model you're interested in has them all. Some models are packed with features you may never use, so there's no point paying for them.

Here's what to consider before you buy:

Important considerations

Size (shape)

Smaller digital camcorders are shaped so the body sits into the palm of your hand. These palm-sized models are very handy for travelling, but are prone to camera shake, making the image-stabilisation feature very important. Bigger models tend to give better results. Note that professionals still use quite large cameras.

Try out the models you're interested in. Check whether you can comfortably hold them and reach the main controls (such as the zoom). This is especially important if you're left-handed, as most cameras are easier to use with the right hand.

Zoom

Most camcorders have an optical zoom with 10x magnification or more. Some go up to 35x. They also have a "digital zoom" feature offering much higher rates of magnification, but this makes the picture grainy. The crucial figure is the "optical zoom" – the magnification provided by the lens. The greater the zoom, the more camera shake will affect your footage so opt for image-stabilisation or use a tripod.

Image stabilisation

A feature that stabilises the picture and minimises camera shake – useful for slow pans and while zooming.

Accessory shoe

This allows you to attach things like an external microphone, a video light or a photo flash to the camcorder, adding versatility to your filming. Without one, your options are limited.

Sound

Most models have a stereo microphone, and two stereo audio tracks, allowing you to, for example, record music and/or narration in addition to the original sound recordings. Built-in microphones generally don't perform well – it's usually better to use an external microphone if there's a connection for one.

A wind filter screens out wind noise, which usually improves the quality of audio recordings. This may be an automatic function or one you can switch on and off.

Night shooting

Many camcorders struggle in poor light conditions. Models with an infra-red lamp can make recordings in complete darkness, but this only works well with objects less than 3m away and usually produces a monochrome (black-and-white or black-and-green) picture. A video lamp can help with low-light quality.

Manual controls

While camcorders have automatic presets for different filming situations such as indoor, bright light, or sports filming, manual function offers more control over aperture, shutter speed, and white balance. This gives you more scope for creativity.

Time code

This feature gives each picture frame an invisible digital marking that allows you to edit very accurately.

Spare batteries

Some batteries will run out in just over an hour – and if you haven't got spares, you're stuck. Spare standard batteries are around $60 to $150, and longer-lasting ones can cost up to $350 or even more.

Video editing software

All digital camcorders allow limited editing on camera but for more advanced effects it's better to upload the footage to a computer and work on it there. With the right software you'll be able to edit your own movies, add music, soundtracks and voice-overs, along with titles and special effects.

The video is stored on your computer's hard drive as it is downloaded from the digital camcorder. When editing is complete, this version can be converted into several different file types for storing on CD, DVD, tape, or even emailing to others.

Video files contain a lot of data (216MB per minute of DV video), so you do need a fairly modern computer with lots of RAM, a powerful graphics card and a big hard drive.

Also worth considering

Image sensor

The image sensor is the device that converts the optical image into the digitised electrical signals that are recorded. The more pixels the image sensor has, the better the potential picture quality. There are two types – CCD and CMOS – but the type isn't important for picture quality.

Memory card

An alternative to storing images on tape, DVD, or hard drive. This allows you to operate the digital camcorder like a still digital camera. You can use the card to store and retrieve photos and short video clips. Most camcorders have a slot for an SD, mini-SD, or MS Duo memory card.

Monitor

Camcorders have LCD colour monitors with adjustable brightness. The monitors can be swivelled to face forward so you can film yourself. Most LCD monitors are the same size, around 2.5 inches.

Viewfinder

In order to make camcorders more compact, many no longer have a viewfinder, instead relying on the LCD monitor. For those that do have a viewfinder, most have a dioptre-adjustment feature (similar to binoculars), allowing you to adjust the viewfinder to your eyesight so you can use it without your glasses.

Long-play (LP) mode

Use this setting to record at reduced speed so you can fit more on a tape. The sound quality may suffer, but the image quality is usually just as good.

Remote control

Most camcorders have a remote. They generally offer most playback functions plus additional ones, some of which may be available via the remote only.

Connections

Think about which connections to your TV and computer you'll use, and make sure the model you're interested in has them.

There are three main types of connection: outputs to TV, output to computer, and inputs.

Output to TV

Composite video

Composite video input is the standard system. The brightness and colour signals are combined into the single video signal (yellow RCA connectors); there are also mono or stereo audio channels (red and white RCA connectors).

S-video

Offers a better picture-quality than composite because the brightness and colour signals are kept separate - but you'll need separate audio cables because S-video doesn't carry sound. S-video can be identified by a small round four-pin plug (mini-din).

Component video

The best picture-connection option for conventional TV sets, but it's not always available. Three video (red, blue and green RCA connectors) and two audio cables (red and white RCA connectors) are required.

DVI (digital visual interface)

A high definition connector for video usually found only on plasma or LCD screens. It can carry digital and analogue video signals to a screen capable of displaying them.

HDMI (high-definition multimedia interface)

An all-digital connection for both video and sound in one cable.

For more on connections to TV, see our Television buying guide.

Output to computer

This is via a digital format, such as Firewire (also called IEEE 1394), USB or Bluetooth. Firewire is the standard method, as it's much faster than USB.

Inputs

These are just as significant as outputs, perhaps more so. With a bi-directional (input/output) Firewire socket, you can transfer footage back into your camera from a computer, so the edited version can be easily viewed or stored on a fresh tape or DVD.

With an AV or S-Video input, your camcorder becomes even more useful - as a digitiser. Say you've got a lot of precious family footage on Hi8 or VHS tapes. Play these through a VCR or analogue camcorder, input the signal to your digital camcorder, and it will be converted into a digital format. The contents can then be recorded onto better-quality media, such as a mini-DV tape or a DVD.

Do you need a camcorder?

Most compact digital cameras can record video as well as stills, and many can record up to an hour of footage on a large memory card.

In the past we've found the occasional digital camera that can record video up to the standard of a good SD camcorder. But these can't remotely compete with a high definition (HD) camcorder.

All camcorders can take still images, but we've never tested a video camcorder that could compete with the photo quality of a dedicated digital camera. This is because digital cameras usually have higher resolution, and because camcorders compromise exposure and white balance using the same lens for video and still photography. But if you're after screen shots or a photo on the go, some do have good photo quality, especially the HD models.

For the best possible video and photo quality you'll need both a camcorder and digital camera. We may have to wait a little longer for good-quality all-in-one cameras.