I am no expert, but it seems to handle everything fine. I would say if I had to comment that it doesn't handle low light all that well, the colours are a little to the blue side, subdued on the whole.
Like I said it depends on what you want to use it for, I certainly wouldn't suggest it for broadcast quality recording. Its also probably fairly useless for stop motion animation, but then again most low end camcorders are...and at $250 it is in the VHSC and HI8 field.
Chili