Firstly, many thanks for your replies and wisdom.
I think I might have misled you in overestimating my knowledge / experience in this field.
I only understand the bare basics of the different formats and the only editing I have ever done has been basic (via the camcorder in the tape), i.e. unaided by a PC. That's why the whole association with "a" PC scares the heck out of me (and I know this is an obsolete and archaic thinking).
It's not that I resent learning, but the truth is I will have practically no time to play with editing and hence was looking for something which would deliver a good HD result out of the box and could be easily transferred to a DVD (in its original or lighly edited version) via a DVD-recorder or a PC (either of which I would need to learn).
As for the outputted material (DVD), it will be watched on a HD TV via Xbox 360 but also on SD TVs.
So to summarise, the camcorder needs to tick the following:
- Ease of use - straight forward recording, unedited playback and output (for recorded onto DVD)
- Good quality of unedited (or lighly edited) output material
- Ease of learning of basic PC-aided editing functions
- Quick and intuitive operation (start up and menus) as required for filming an unpredictable toddler...

- A technology which would be still relavant (i.e. not obsolete) and so would allow my child to access the recorded content 10-20 years from now.
I understand AVCHD is a SONY-supported format and hence probably best assoicated with a PS3. The fact is I have an Xbox 360. Would it be still possible to watch recorded content through an Xbox 360?
I had a look at the Panasonic SD5 as suggested by Mark and it looks like a very capable and compact little thing. Would that tick the boxes above?
Senu, I think I am confused on the answer regarding the NTSC (US)compatibility. Providing I have an HD TV and I buy an HD camcorder, would it be an issue if I got it from the US?
Many thanks once again