Formats
For the best video quality, miniDV is the choice. While some users might find the idea of tape based systems quaint, tape has the least compression and is still used in all professional camcorders. In terms of operation, a flash memory camcorder, which stores to memory cards and as such has no moving parts, is an excellent option; these camcorders are generally among the most compact. DVD camcorders have the convenience of being able to record to a small DVD and then play that DVD in any DVD player, but they are more prone to skipping while recording. Hard drive recorders offer more space, but their moving parts make them more susceptible to breaking.
In addition to the media, consider the resolution. High definition camcorders, while more expensive, offer much better video quality than standard definition camcorders.
Features
Look for a camcorder that has a good lens on it with an optical zoom of 10x. Many entry level camcorders will market a zoom of 20 to 30x, but the lenses are generally not as good and the video quality will suffer, especially in low light. Check what kind of stabilization is used on the lens; optical image stabilization is best.
Camcorders can be bought with CCDs that offer a lot of megapixels, but these higher megapixel CCDs will only boost the still image resolution, not the video image resolution.
Add ons
One thing you should look for in a camcorder is external inputs for a microphone to get better sound or video inputs to connect to external video devices. A camcorder that has a video input can be used with a helmet lens to record dramatic footage while skiing or climbing.
A remote control can be useful, particularly for recording group footage.