Summary: After doing a lot of research so I could get the most out of my measly $250. budget, I ended up getting this Vixia HF11 from eBay. This was my choice because it was the first affordable camera to introduce 24mbs quality the AVCHD, codec and the 1/3" CMOS sensor seemed like a decent spec too. It definitely has and does things that are similar to more expensive models. My hope is that I could blend its footage in with what I shoot on my DSLR's.
Summary: Update: Video recorded in highest quality (24) can not be edited in to AVCHD disk, the included software will down grade the video to 17. First try: I shot video with removable memory card, the video was stunning sharp and beautiful. Later:I found out that the big built in memory card is not that great; I prefer to pull out the card to watch video with PS3 right away after record the video. With buil in memory I have to burn it to the disk and it takes forever.