Most people are concerned with features the camera comes standard with. But, when editing a movie, all of the fxs and graphics can be added in. So, mainly concern on resolution, a decent LCD (Liquid Crystal Display) screen, and zoom, preferably an optical zoom. Digital zoom when zoomed to an extend gets fuzzy and the image is distorted.

Here are some camera models I suggest: 

This is the Canon ZR-60 of the ZR Series. It ranges to about 700 dollars, but the money is worth it. It has a 2.5 inch LCD screen, 20x/400x zoom, and 500 lines of resolution. The ZR-60 is one of the best cameras for home videos. The other cameras in the ZR Series sell for cheaper, but come with less features.
Canon has constructed many great cameras, but the GL2 is one of the best. Its lens has 3 CCDs which deliver awesome picture quality. It comes with a built in microphone, and a 2.5 inch LCD screen, and has 525 lines of resolution. Although, this camera is expensive. The GL2 is great for documentaries  and higher quality amateur films.
The GL2 is followed up by another camera, the Canon XL2. It also has 3 CCDs, and has pixel shift technology. The XL2 has different shooting modes, one of a standard quality, and another that is of motion picture quality. It comes with a built in microphone, but no LCD screen, but the different shooting modes make up for it.
The Canon Optura 20 is another less expensive home video camera, which is always good for films. The Optura 20 has a 3.5 inch LCD screen and 16x/320 zoom. The Optura 20 has, like other cameras, slots for memory cards. Memory cards usually are used for still pictures, not for recording.
This is the Sony DCR-VX2000. As you can see, it's similar to the GL2, but the GL2 is the direct competitor of the DCR-VX2000. The DCR-VX2000 has a 3 CCD lens and a built in microphone. It comes with a 2.5 inch LCD screen and 530 lines of resolution. The DCR-VX2000 has significantly better zoom than the GL2. This is one of the better cameras for Indie-Film making.
The DCR PC101 is another camera that's on the good side of home videos. It comes with a 2.5 LCD screen, and 520 lines of resolution. It has CCD lens, which provides it with good shooting quality.
Panasonic has a line of cameras as well. This is the PV-DV203. It has 10x/700x zoom, and a 2.5 LCD screen. It has 500 lines of resolution. It comes with a memory slot to fit in memory cards and 8mb of on board memory.  This camera is insanely small and will fit into your pocket.
This is JVC's GR-DV3000U.  It has 540 lines of resolution and 1.33 megapixel, and 1,330,000 pixels. It can take still pictures and has four different settings. It also has 10x/300x zoom, which is little compared to some of these other models.

All of these models are Mini DV format. All of them range from 400-3,000 dollars.

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