I have no experience with either of these 2 camcorders, but I can at least help with a few of your points
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I will be transferring to PC thorugh Firewire or USB
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Just in case you were wondering which is best -
Dont' use USB!!!!!!!
Seriously, USB will not give you full quality capture as it is just not up to the job. Firewire is the only way to get 100% quality off the DV tape and onto a PC.
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NV-GS35 looks way ahead with a superior optical and digital zoom
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Ignore teh digital zoom! If you use it, the further you zoom in the lower the picture resolution (ie quality) gets. Stick to optical as no quality is lost with it.
Also consider how shaky the picture will be with even a fairly low zoom if the cam is handheld. Even on a tripod high zooms can make the picture uncomfortable to watch as it still shakes around with the slightest movement of the cam. I only have a 12x optical zoom and even this can be too much.
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as well as the ability to store still images to a memory card
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IMO get a dedicated stills camera for photos and use the cam just for video. Stills from a camcorder are never going to be that good, although they are getting better.
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however I have read that it doesn't have true widescreen capablilities
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This could be a big let down for this cam. If you record in widescreen on this cam it will mask off the top & bottom of the CCD to give a 16:9 image. This is ok, but it lowers the resolution and therefore PQ and if displayed on a large plasma or PJ the loss may well be too obvious. However on a smaller screen this may not be noticeable.
Hopefully the above ramblings have helped a little in the decision on which cam to go for, and not just confused things even more
Good luck,
Mark.