Looking for an HD video camera

I am a teaching student and I need to film myself in a classroom activity next Tuesday. My school rents cameras, but for two days, it would cost $120 and it would cost $180 for a week. May as well buy one if I am spending that much.
I have an older Mac Pro Quad Core and I am running 10.6.7 and Final Cut Studio 2 (I bought FCS3 not too long ago, but have not installed it yet).
I'd like to go HD (I think) and spend no more than $500.
What I want to do is be able to film stuff, dump it into Final Cut Pro and make standard definition DVDs. I know how to capture video using a Canopus ADVC-100 and make DVDs from the resulting DV files using compressor and DVDSP, but from what I am seeing, cameras record in MTS and I'd need to do a log and transfer? Would I transfer to ProRes and make my DVD as usual out of that file? I have never actually captured video directly from a video camera, just VHS through the Canopus so this is ALL new to me.
I'd shoot mostly home movies and the occasional live band. Would a camera like either of these be good for my needs?
Sony HDR-CX160 LI
Canon - VIXIA HF R21
Any suggestions?

Good point(s). That's why I said I think I'd like to go HD. I didn't know how necessary it was, I just knew it was what was popular now. I'd mainly be using it to do home movies, maybe the occasional web clip and make regular SD DVDs. I don't even have a Blu-Ray player yet, though I plan on getting one and I don't think I'd take enough movies to have a burning desire to plug the camera into an HDTV to watch videos.

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