What should I get, HDV or AVCHD camera.

I'm looking to get a new camera and I'm looking at most likely getting a Sony camera. I'm wondering which will work better and easier with Final Cut. I'm just stuck in deciding between a Hard disk drive camera that will record in AVCHD or one that records on mini DV tape in HDV. Im mainly looking for which has higher quality and greater ease of use.
Thanks

What version of FCP are you running? AVCHD support is officially limited to FCP 6.0.1 and I'd be wary until the accepted wisdom is that this is a straightforward workflow with no quality loss.
You state that your primary objectives are output to the web as video podcast or to DVD. As such I believe you're wasting your time looking at both proposed formats.
AVCHD workflow is unproven IMHO, HDV is wasted on video podcast/web output and you'll struggle to find a Blu Ray burner to output BluRay DVDs and the red dye HD DVDs you can output will only work in 1 player.
HDV editing brings it's own difficulties as stated and suggesting the HVX-200 with its associated P2 cost is plainly ridiculous for your budget.
I ain't impressed with 3 x 1/5" CCDs either - whatever the camera.
Get a 3 x 1/4.7" CCD Panasonic PV-GS500 (or GS400 if you can find one) or Sony DCR-HC96 for straightforward Standard Def workflow unless you want no inexpensive external monitoring or long render times (without converting to a more editing friendly codec via capture card = more expense).
There's life left in Standard Def and you'll still get decent quality if you're on a tight budget and wait till HDV/HD/AVCHD or whatever becomes cheaper/easier to work with in the future.
Camera technique is more important than format - don't forget, if you're shooting hi-def for large screen viewing (and it's pretty pointless if you aren't), focus is so much more critical for one thing - I'd much rather work with and watch stuff shot by someone who knows one end of their DVX100 from the other, rather than some eejit who knows nowt but is using an expensive all-singing, all-dancing Hi-Def offering.
IMHO, of course.

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