Ditch the tape, Furrygoat (Steve) points to the Sony HDR-SR1 camcorder that records in High-Definition, 1080i quality on a built-in 30GB hard drive (which loosely translates to around 2 hours of recording in highest quality).  This should work out of the box with Windows (Vista) Movie Maker which has support for HDV editing (yes, my Mac does that too thanks).  Though I understand the new camera uses the MPEG-4/AVC/H.264 codec so you may still have to do some conversion. It also takes adequate 4 megapixel stills, and has dolby digital 5.1 recording.  you can even snap 2.3 megapixel stills while you're recording video.  Sony still seems slave to their own proprietary Memory Stick format, but otherwise, this sounds like a winner.  As Furry says, "Must. Resist. Temptation."  At $1300, I'll be resisting unfortunately for a while.  I do wonder though- should I put it on my christmas list and hope that my wife reads my blog, amping up the whole "our son will never get any younger" argument for purchase? 

More details and a preliminary review can be found at camcorderinfo.com.