I upgraded to an HD camera not long ago. Video mainly but take stills too. I got the Canon Vixia HFR300. Funny thing is most pictures I take that people love are shot with a Kodak Easy Share 6 megapixel that you can get for under $100 and it shoots video. I have over 20 on youtube shot on that little camera and they look good.
The Vixia I got on Amazon with extra batteries for $300. It will take an external mike, too, but I just use the on board mike.