Depends on your budget and what you want to do with it. Also, you need to look at lifecycle - what's going to be the end result of your movies? Are you going to store the footage on your boot drive, and do you want to burn movies to DVD or stream them to your Xbox? The problem most people run into is they shoot a lot of random stuff, then never look at it again. Or shoot a 2-hour movie of their kid's recital or choir or sports game, but never edit it down to 5 minutes and put it on Youtube.
If you just want a cheap, basic camcorder, then the Kodak Playsport Zx3 is nice. It doesn't have a zoom, but it's waterproof and simple to operate. It goes for $114 on Amazon:
http://www.amazon.com/Kodak-PlaySpor...dp/B0030MITDK/
For your budget, if you're looking for something more in the traditional camcorder range, but also want to do still photos, check out the Canon SX30IS:
http://www.amazon.com/Canon-SX30IS-D...dp/B0041RSPR8/
The SX30IS has a megazoom and does 14 megapixel stills plus 720p HD video. It's actually on sale for $314 today: (normal price is around $400)
http://forums.anandtech.com/showthread.php?t=2122269
The JVC you're looking at is nice because it has a built-in hard drive, so you don't have to constantly dump your memory cards on your computer. It's a bit more risky though, because if the hard drive fails, you can lose a lot of recorded footage if you haven't transferred it over to your computer. I've never actually met anyone whose camcorder hard drive has failed though, so it's fairly safe.
Windows 7 comes with Movie Maker 2011, which is available free:
http://explore.live.com/windows-live-movie-maker?os=other
Extensoft also has a basic editor called "Free Video Converter" available for download here:
http://www.extensoft.com/?p=downloads
DVD Flick is a free app to burn movies to DVD :
http://www.dvdflick.net/
Hope that gets you pointed in the right direction
