Camcorder: Which Format?

Hi,
I have a new MacBook Pro, and Final Cut Express 4.
I want to buy a camcorder for < about $700, for family video. Looking for an after-Christmas sale. I'd like to move away from tape, to a hard-drive camera, IF I'll be able to store the hours and hours of unedited video safely, with a reasonable amount of hard drive space (I'm thinking in the range of not more than about 10 gigs per hour).
B&H has the Canon HG10 at a great price of $499. But it records in AVCHD, and I think if I import with FCE4, the amount of storage I'll use up in Apple Intermediate format will be too much.
Is there a good hard-drive based camera, preferably high definition, that stores in a format that's compressed, that I'll be able to keep the unedited video in, and also edit it into movies? (I do plan to edit the video into movies, but I'm going to want to store most the raw video as family memories, especially when I don't get around to making edited movies out of everything).
Thanks!

You can archive raw AVCHD files in compressed format. You just have to make sure to copy the entire AVCHD folder to your hard drive, and not just the MTS files. Here's my favorite primer: http://multimedia.journalism.berkeley.edu/tutorials/video/canon-vixa-hf-10/loggi ng-and-transferring-video/
The files expand a lot while editing, so plan on a big hard drive either way. But you can trash the render and capture scratch files once you're done editing and just save the final movies. But plan on buying hard drive space to work with this format comfortably. Otherwise, buy a tape camera and save the tapes.

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