NEW YORK (CNN/Money) - I think the coolest thing about digital video is its democratizing effect: you don't have to be Steven Spielberg -- or have a Spielbergian budget -- to create fun, high-quality videos. With today's digital video cameras, it's easier than ever to get great material. But before buying a digital camcorder, it helps to know what to look for, and what you're giving up when you spend $500 rather than $2,000 on a camcorder.

There are a couple of questions you'll need to ask before you go shopping. First, does size matter? Smaller video cameras are easy to carry and hold, but they tend to offer fewer features and cost more. Call it the price of miniaturization. Most of the minis also don't come with great mikes, so audio quality can be compromised.

Many of today's digital camcorders have the ability to shoot still photos. Plenty of folks appreciate having one camera for both functions. But I want the option of being able to blow prints up to 8"x10". And since most shoot still images at less than 2 megapixels, that won't work. Digital video cameras also come with optical and digital zooms. As is the case with digital still cameras, a good optical zoom (10x or better) is best.

Finally, a heads up: Most digital camcorders transfer video to PCs via FireWire, i.Link or IEEE 1394. They're all basically the same. So if you plan to edit video on your PC, you'll need a FireWire port. Don't have one? A $30 card will do the trick. Just open your computer and pop it into place. I did and it only took me about five minutes. Really.

Here are three digital video cameras I think are worthy of real consideration.

JVC GR-DVL120U ($360)

Beginners and budget-minded buyers looking to go digital should check out the JVC GR-DVL120U. Among JVC's best sellers, this camcorder comes with a 2.5-inch color LCD and 16x optical zoom, so you can move right in on your subject. It has fade and wipe effects for basic video editing, as well as digital image stabilization and Night-Alive to improve lighting on dark subjects. It's not the best digital video camera on the market, but at this price, it's pretty doggone good.

Canon MC200 ($1,000)

It's small, though not as small as Canon's Optura. Then again, the MC200 doesn't make tradeoffs for its size. Not only does it have a 10x optical zoom, but you can shoot 1.3 megapixel stills with the unit's unique built-in flash. As I mentioned earlier, that's fine if you don't want prints larger than 5"x7", and the flash is a nice touch. You can shoot a short compressed video of Junior's first steps, store it on the included 8MB SD card, and quickly upload it to the web. This full-featured camera even allows you to stream live video through the device's FireWire port.

Sony DCR-IP220 ($1,799)

It isn't Sony's smallest, and for folks looking to shoot high-resolution pix with their video camera, it's the best option currently out there. The DCR-IP220 has a touch screen LCD display that lets you focus on your subject while making selections. The camera's 10x zoom Carl Zeiss lens provides excellent image quality. Super SteadyShot, Super NightShot and Night Framing make this camera perfect for less-than-ideal conditions. But for me the DCR-IP220's real draw is its 2 megapixel resolution for still photos, which can be blown up to 8x10. It's not cheap, but if you want a camera that records video and takes good stills, this is it.

Brian Clark writes about consumer technology for Money Magazine.