First, determine how much you want to spend. Second, decide whether you want a mini-DV or Digital 8. Quality difference is minute but mini-DV models can be a lot smaller. Also, do you want digital still capability? What is the min/max resolutions you desire? What are optical/digital zoom requirements? Will you be transferring from digicam to your PC to make home DVDs? If yes, do you have a firewire port on your PC or just USB? Use following link as a reference:
http://www.dvspot.com/reviews/cameraList.php
When you get all that figured out, go check out your local stores first, BestBuy, Circuit City, Fry's, Costco and Walmart. Sometimes home shopping channels also carry them in a package deal, extra batteries, memory card, carrying case, etc.
When you have narrowed down to a few models, do a search online and read up on product reviews. Invest your money wisely.