No you don't need a new camera as that will cost too much. Just download a 30 day trial of Sony Vegas Platinum and see if that fixes the problem. If you can find a software solution then that is cheaper than buying a new camcorder. Windows Movie Maker is too basic and it can only work with a small number of video files, so you will have to give up on the idea of using WMM.

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Better than a poke in the eye with a pointy stick any day...