Recommend iMovie-compatible HDD camcorder in $400-$800 range???

With apologies if this question has been asked before, I recently bought a Sony DCR-SR42 camcorder with HDD because I typically record for several hours at a time, making tape, MiniDVD and MiniDV inadvisable for my purposes. I'm about ready to tear my hair out trying to view the file: I was able to use VirtualPC to download the video to my hard drive via USB, but still can't view the video.
Would be happy to get this system working, buy a different HDD camcorder, upgrade to Leopard... but would appreciate it if anyone could offer recommendations. Is there an HDD camcorder that works well with iMovie? Does Leopard handle HDD camcorders better than Tiger? Should I just give up and buy a low-end PC for this purpose?
Thanks for your help!

I just got a canon HG-10, works well, image is good, and although announced as $1000+, I found it for only 750 bucks @
butterflyphoto.com/1/HG10/HG1040GB_Hard_DriveCamcorder
Just in case, I have no interest or connection with that company. I also just have a few days with the device. I am not sure why so cheap, but there are other places that is also cheaper that the 1k announced in the apple website and cannon website.

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    Message was edited by: vasenior87

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