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http://www.bhphotovideo.com/c/product/671655-REG/Canon_4394B001_VIXIA_HF_R100_Flash.htmlAdd to cart $279.Mic in and headphone can't beat this for the price.Do you want to spend more?This camera has no built in memory so sdhc cards are necessary and for HD video you need Class 6.I use these ones without any issues.Don't forget a large capacity battery.http://www.bhphotovideo.com/c/product/590176-REG/Fujifilm_600007622.html
As I understand it, the killer consumer camcorder this year is the Panasonic TM700. It's getting a lot of positive press for its low light capability (fast lens) and great image quality. Full manual controls, etc. etc. Currently $795 at B&H.Fran
I don't know if you ever have owned any video cameras but honestly NONE can see anywhere as good as the human eye in low light so you may very well be dissapointed with any video camera.Since you are looking to mostly capture outstanding memories of your child and have changed your budget i would also seriously consider a HD DSLR instead.Why?Because you can shoot immaculate hi-res photos of your family AND record outstanding lowlight video.Canon t2i with 18-55mm kit lens for $849.Add a canon ef f1.8 for $99 more dollars and your a very lucky man!http://www.bhphotovideo.com/c/product/675618-REG/Canon_4462B003_EOS_Rebel_T2i_Digital.html
im very happy with my panasonic TM700 and its ois is the best i have ever seen.i also have an HV20 and it is a good camera but the TM700 handles low light much better.The best low ligh camera i have is the Sanyo Fh1 it is only about $300 but it has horrible stabilization and auto focus. I use them as stationary cameras on tripod or mounts. lock exposure and focus and they are great.