Right, well for £200-300 your best bet is miniDV (tape). If you do a search on Amaz*n for "Canon mini DV" or "Sony mini DV" or "Panasonic mini DV" and so on, you'll see what's out there and for how much.
In that price range there's also the Canon FS100 which a few people on here own - though it has received mixed reviews. It records to SDHC flash memory cards.
Out of the two, I'd back miniDV for being the simplest to import to your PC, though importing from a camera like the FS100 isn't rocket science, either. With a miniDV camcorder, your computer needs to have Firewire support (a.k.a. IEEE 1394):
http://en.wikipedia.org/wiki/FireWire
Camcorders do tend to be cheaper in the States. The problem is that you'll get an NTSC camera, not a PAL one. Does this matter? Well, if you're only going to be viewing the videos on your computer and uploading to the web for friends and family to watch, then no - it doesn't really matter. But if you want to make DVDs to share, things can get a bit more complicated. This issue is discussed frequently here, so do a search for "NTSC" and read the relevant threads.
Andrew.