In June 2007, I bought a Canon MD101 as recommended by various video editing forums. It was fine, but I want something that produces much higher quality footage, so I am now in the market for a new compact (so I can take it on holiday etc.) digital video camera for around 500.

I've been happy with MiniDV, but the quality has been poor due to the camera itself. Am I best off sticking with a MiniDV camera (a higher quality one of course), going for a HDV camera, or changing format completely (DVD, HDD etc.)?

Any actual camera recommendations?

Cheers lads and lasses!