I believe Jessops do a 30 day refund, so you could buy a DVD camcorder try it and see how you get on. I specifically asked if we could bring ours back if we didn't like it and they said yes, that would be no problem as long as we keep box and all packaging etc.
8cm DVD-Rs are in our local poundland in four packs, so thats 25p each. I have used quite a few already and they work perfectly for me.
A possible fairly major problem no-one has mentioned is that if you record 3 minutes on a DVD-R you then have to 'FINALISE' the disc in the camcorder before it will play on a normal DVD player - on our Sony DVD205E this would take about 9 minutes if you only recorded a couple of minutes (it is quicker if you record more bizarrely, 29 minutes on a disc finalises in about 1min), so for your idea of record and hand out disc - this would be a real pain.
You could use DVD+RW discs, which don't need finalising, but they cost a lot more than use once disks (best I can find is £8.49 for FIVE DVD+RW discs delivered.
Make sure the camcorder you look at can use DVD+RW discs, as not all can.
I hate to say it, but have you considered buying a 2nd hand full size VHS camcorder ? You can probably pick one up for next to nothing, run it on the mains, and you can buy 5 packs of VHS tapes in our poundshop, so I think this would be very hard to beat for your needs on price or convenience !!
James.