I wouldn't hesitate on buying One of the Canon HV line videocameras. I purchased an HV20 a couple of years ago and love it. I would recommend it over a Sony handycam any day. I'm not sure why it was said that the handycams have better color.
When i did my research i found that the HV line of cameras had the best quality picture of any videocameras in that price range and the next higher price range. The only shortfall would be in low light situations they might not be as good as others and they do lack any manual controls for low light situations. But i never have lost a shot oppourtunity because of it.