I used a Sony Handycam 20x optical zoom. You can check out a couple clips at
www.chuckwagginprod.com and see for yourself. Sony now has a60mb memory cam with 60x optical zoom for $399. For less than a $100 you can get a Sony bag and extended life battery. Optical is what you look for, digital zoom is what makes it grainy. But a good liquid head tripod is a must have when zooming in a shot. Checkout those clips and good luck.