That's a perfectly acceptable camera. No frills, all automatic and will still get the job done.
There are three things that are VERY important when getting a camera:
Three CCD’s
Manual controls for the iris, shutter, focus and white balance.
A microphone input.
Unfortunately, there is nothing like that in the $300 range. In the
around $1,000 - $1,500 range there are currently only 5:
The JVC GR-X5 is a nice starter camera with manual controls and a
mic input. It can be found for under $800.
The Panasonic series (PV-GS300, PV-GS400, PV-GS500) are terrific
3CCD cameras. It seems the 400 is hard to find and that’s too bad.
It’s a great little camera. But the 500 is still an excellent starter
camera with the essentials.
Sony DCR-HC1000 is very similar to the Panasonic cameras. If you’re
more comfortable with Sony, this is the camera for you.
Several cameras are now moving from tape to hard drive. Called HDD
(hard disc drive) there are a few in this price range that should be
considered. The major downside is the MPEG-2 compression.
Sony DCR-SR300 has a 40GB non-removable hard drive. It holds
9.5 hours in HQ mode. As is all too common with Sony there is
no mic or headphone jack so this camera is not acceptable for
movie making - it’s stuck in the “vacation” level.
I like the new JVC GZ-HD7. I’ve seen these on line for as little
as $1,200. A really nice Fujinon lens makes a huge difference
and full manual controls is important. Three 1/5’ 16:9 progressive
scan CCD’s are pretty impressive for a camera in this price
range. It records directly to a built in 60GB hard drive.
Close is the Canon HV20. It records in HDV (1080i) and 24p (60i),
has a mic input and manual controls of white balance and focus
but it uses one 1/2.7” CMOS sensor rather than 3 CCD’s. For me
the jury is still out on the CMOS. And it’s so small the handling
is difficult.
Bottom line: any camera you can afford is the best one to buy. It's
much better to learn all the other, very important aspects of making
a movie now and get a better camera later, than to keep waiting
until you get a camera with all the essentials.