Hi macman, and welcome to the forum
There are a load of DV cams in the £3-400 price range that a lot of users here are recommending. The features differ between model & makes by quiet a large amount, so think about the use you will require from the cam and what you will do with the footage captured.
If you are going to edit on a PC and then master to DVD's then this price range will give a large improvement, but if all you are going to do is copy onto VHS then less so (and even at higher prices).
Another option to consider is to get a Sony Digital 8 camcorder as a lot of these can play back your old Hi8 tapes. The price & quality of these cams is not too far from that of a DV cam. The disadvantages though are that D8 cams use larger 8mm tapes (DV is 4mm) and therefore the cams tend to be bigger & heavyer and also they are only made by Sony. If interested then get down to a local Jessops etc and play with one. Take along an old Hi8 tape to ensure it will play back and see if you like it. Then get the best price off the internet, take the details back to Jessops and they will price match.
Good luck,
Mark.