Digital Cam/Camcorder Suggestion

Ok guys, here's the deal...looking for a new camcorder/digital camera. Sorry ahead of time if you've all seen this thread a million times, but just having a really hard time figuring out what to buy. Figured you guys probably know a lot more than I.

I want a camcorder rather than just a digital camera, however at my budget it may be best to just got w/ a digital camera(stills). I want to do both, take videos and still pictures. Only reason i'd rather have a camcorder is so I can take larger videos(width/height size, not memory size) than what a digital camera can.

One question, can the camcorders that record to mini-dv but have the optional memory card slot record videos onto a memory card? Or do I have to record the videos to the mini-dv?

Here are the things i'm looking for in a camcorder/camera:

- Able to record mpeg videos onto a removable memory card and transferable to a PC for editing

- Take quality still pics 3-4 megapixels?
- Obviously to run on a rechargeable battery(no AA, AAA crap)
- $300 or lower
- smaller the size, the better

Not too picky...

I'd appreciate any information. I've looked around for several hours here online and at a few local stores. Can't decide.

Thanks guys!