Well for anyone reading this, for your information or hopefully help...
I returned the Sony and went for the Panasonic 3 CCD TAPE camera. An NV- GS330 if that helps any.
MUCH better picture quality...much sharper and SO much better when hand held for filming...the steady cam thing on this one really DOES work without that swimming effect or blurring when you pan.
Of course it takes SO much longer to get the stuff onto the PC but I would rather that than put up with a really lousy picture.
It's a heavier camera WITH a viewfinder instead of just the LCD screen.... I like the option of using either when filming.
I've also decided I really don't like touch screens on LCD screens. Too fiddly.
The simpler the better.