I have the same model -- with 2 years of very light use, it's still in good shape, but I've wondered about the load mechanism -- it sounds like 100 moving parts when it opens and closes.
On the question of what's best, I'm unable to help, but I do have this hint: post your broken camcorder on eBay for sale. I'm amazed at the prices people pay for broken electronic gear. I wouln't be surprised if you got $50-100 for your old camcorder, that you can put toward a new one on eBay or epinions.com -- good comparison shopping and also opinions on many different camcorders.
Hope that helps,
Mike
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