Ive got the Pany SD9 and its extremely easy to use. Ive mainly just used the 'Automatic' setting straight out of the box, which gives fantastic picture quality recordings when outside in decent daylight. Though getting to grips with 'Manual' settings is supposed to be recommended. Its 'image stabalising' function works a treat & it has face recognition also.
Not done any indoors recording yet but folk say the picture quality degrades.
Perhaps this appears more noticable because the outdoor recordings are so good? And perhaps the indoor picture quality is no worse than a SD camcorder at its best?
One thing for sure, you will certainly need additional batteries and the Panasonic battery is quite expensive at the moment. Even so, your B-I-L-T-B will need to keep on top of charging the batteries throughout the day as they may only last for one hours recording.
And yes, you will need a suply of SD cards. I use 8GB SDHC cards which give about one hours recording. The best price Ive found is about £11 each. I assume a 16Gb card will last double that. This is based on the highest picture quality setting. After all, if you've invested in a high-def camcorder, why choose a less than perfect picture setting?
Oh, and buy a tripod! And read the Canon HF100 thread also, supposed to be a great unit.