The main problem is the size of the lens. If I remember correctly its only about 30mm. So the amount of light getting through the lens is going to be limited. This is true of all small lenses. I get the same problem on my Sony TRV33. Low light conditions are a no goer I'm afraid.
Yes a cam light will definitely help. I even noticed that the indoor performance of my TRV33 improved when I switched the ceiling lights from 60watts to 100watts (and no I didn't blow any fuses before anyone asks).
As for the nightshot thing. Well I agree its a bit of a joke isn't it? I think manufacturers just add these features to domestic cams as a marketing gimmick.
COMPAQ something or other with 500Gb Boot Disk, 1Tb external Firewire Disk, 4Gb Memory and a super duper sound card, 19" TFT Monitor etc etc etc
Sony TRV33e : Sony TRV310e : Canon XM2
Sony Vegas Studio editions to v11
Remember, there is always more to learn than there is to teach.