Thanks fellas... just to get back to a few things you asked. Its for my folks to take on holiday. But they love their holiday memories so although it'd only be used 3 or 4 times a year I'd want high quality. It also needs to be small. We've currently got a Sony Handycam (hi8) and I'd want something alot smaller than that.
The plan is for me to record their holidays onto DVD in my computer. Probably just straight copies for starters and look at editing them up at some point. Finally convinced them (after years trying) to get a dvd player

Would also be keen to copy the old VHS tapes of their holidays through the camera and onto DVD again. 16:9 is a must I'd say with the new camera. They'd be annoyed if it wasn't 16:9 after all my nagging for them to get a widescreen tv

THe budget it probably around £500-£600 but I'd be needing a couple of batteries, a case and some tapes/sticks (not actually sure what the new dv camcorders use)
Not expecting anyone to do all the donkey work for me. I'm reading all the reviews and visiting all the sites to see which one to get myself. But its really good when folk in the know can give advice.
Thanks in advance.