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What camera should I buy to record family memories of high quality?

I will have children soon, and I'm looking for a digital camera not only record precious moments baby memories, but also good in general. The video quality is very important to me, but can not afford the High-end cameras. Also, what are the pros and cons of the DVD camcorders and type you have to connect to a computer? I have a MacBook Pro if that help.

JVC time.

Where the Hell is Matt? (2008)

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