When I was in the market for a new/used video camera, I hit up pawn shops and found for $150 (they lowered it to that from $200). Its some sony job but its mini DV, mic in, hotshoe, headphone out, small, light, color viewfinder and nice large screen. Firewire and s-video outs/ins.
I don't remember the model number and it really doesn't matter since its kind of old now but it works great for me.
When I look for a camcorder, I look for a good lens, does well in all kinds of lights, manual focus ring, mic in, headphone out, s-video is a plus.
For $250 new, I don't know what to tell you but it will probably get you something very consumer-ish with a decent lens but I would suspect it lacks mic in.
Just remember to hit up pawn shops and craigs list because you don't know what you will find.
For those who have a stigma against pawn shops, keep it and let me find the great deals!