What camcorder would you recommend for semi-pro video shooting. Would like one for the best internet video and hi-quality dvd.
Also, if camcorder has option for digital stills is that worth it, or just have a digital camera on hand.
Budget is about $1200 for camera and accessories.
The Sony HDR-HC3 is a really good place to start. It's HDV(optional) and has very good low-light footage. It fits in your palm, and I think it's in your price range.
About stills on a camcorder, if the camera sends the images to a memory stick of some kind, I like it. Good way of getting screenshots from your film quickly, without having to edit it first.
If you are going to produce DVD quality I highly recommend getting a camera that supports mic line-in. It is highly desirable. I have done DVD editing with everything from analog 8mm to Mini-DV, and the quality is mostly reflected in the quality of camera and tapes, not the media or the analog vs digital. I recommend the Panasonic brand for in-expensive line-in Mini-DV camcorders. For internet video I would grab a small $100 digital video camera such as the DigiView from Wal-Mart.
Do yourself a favor and get a 3 chip camera. I'd go for a DV camera, although you could get an HDV if you wanted. I wouldn't spend the extra money for HDV since you can't distribute HDV content to people really, but you can burn a DVD for pretty much anyone. By the time the come out with burners for either Blu-Ray or HD-DVDs on computers, the newere HD cams will be even better and cheaper and that's what I'm waiting for as I need to have an end to end studio for my business.
The other things you should look for is...
Manual Control over: iris, focus, gain, white balance, audio levels, shutter speed.
External mic jack (preferably XLR)
Headphone jack
You could probably find a used Sony VX 2000 or 2100 or maybe even a PD-150 in your price range. Or you could go with something like a Cannon GL-2. There's a lot of cams you could get but try to get as many of the things I mentioned as possible.
Well, if you increase your budget $2-300, then pick up a Sony HD Handycam with built in 40 gig hard drive.. GREAT quality. Not bad in pricing. FIts in your hand nicely. I want one now..