H.C.
Hi there,
We have one of the Sony DVD camcorders. I think it works just fine. You can buy the re-recordable mini dvd's or the 1x recordable dvd. It came with software that allows us to edit the videos on our computer. (The salesperson you spoke with may have meant the ability to edit on the camcorder itself.)
I thought the Sony one was fine, but when we needed a new digital camera, we bought the Canon one. It's the size of a credit card and if you buy a 1G memory card, you can film up to 15 minutes of video. This too you can download onto your computer and then edit it on your computer. I LOVE this one b/c it's a camera and video recorder all in one and it fits into your back pocket. We've had ours for almost a year. At the time it cost around $300 - much less than the DVD camcorder.
So good luck in making your choice. I visit CDNet.com for techinical opinions. Plus Circuit City's website has a section that defines the terminology used for certain products. This has helped me in the past decide which features I need. Good luck!