I have a Sony HC-3 (£650 a few years ago) and now a JVC GZ-HD30. (£250 a few months ago) both bought new.
The Sony uses MINI DV tapes, the JVC has a 120G HDD. The JVC does HDV or ACVHD, the Sony only HDV.
The Sony is definately the better camcorder of the two, it's anti-shake is much better as is the microphones. If you can get an HC-3 for a good price, you can't go wrong.
This was taken using the JVC, and rendered to HD :
YouTube - Ben More and Stobinian - The Crianlarich Hills
This was taken using the Sony, rendered to HD too :
YouTube - Ben Nevis via the Carn Mor Dearg (CMD) Arete 2 off 2
I think the contrast of the JVC is shown inadequate the way the mountain top blends to the sky until I zoom in. Also the better antishake of the Sony is evident.