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can it justify the £80 hike between the best price for either.
Hard to answer. You can of course pay even more and get camcorders better than both of them. While there are some models which are better value than others, generally more money gets you better quality video. All you can do is decide on a budget and get the best you can for that budget.
Everyone has to draw the line at the point which is best for them. Personally I think it is worth the extra.
The camcorder is for the wife. She is a techno-phoebe but wants a new camcorder. She currently has an old Canon Hi-8 which weighs a ton and limits how much she can carry it about. She has a canon IXUS500 which I have to down load the picture and print for her. I just bought her a Sony Ericsson K750i which has a 2mp camera. As always money is tight. Do I buy her the best I can afford, MVX450, or the most practical giving her anticipated usage, MV890.