T-Bone -- I wanted to do the same as you, get away from tape completely, and purchased a Sony Handicam DCR-SR45 with an internal 30GB hard drive.
I paid over $500 for mine earlier this year, but Best Buy shows to have them on sale for $349.00 right now.
It pretty much stayed in the box for months, until recently when I started playing around with Windows Movie Maker first, then Adobe Premier Elements, and it's EASY to make nice movies with it. You can transfer the movie clips directly to your PC, and mine saves them in MPG format. Using something like Premier Elements, you just import the clips and chop them up however you wish, then add titles, transitions, effects and audio -- very easy to learn. I'm only a few days into it without reading any instructions...
Since I'm just a beginner, I stuck to using the smaller videos I recorded with my digital camera at first because I wasn't sure how to trim back the size of those made with my Handicam... Now I know... programs like Windows Movie Maker and Premier Elements let you compile the video in any size, and even in some formats preset for things like YouTube -- you can even upload to YouTube directly from Premier Elements.
I'm about to upload a new YouTube video within an hour that I put more time into than any other -- added music and Kung Fu sound effects...

But here is a simple one I just finished the other day, and again pardon the video quality -- I recorded these using lower-res video on my digital camera, not my Handicam:
Mini-Pea Rokken Loves Steve Augeri
http://www.youtube.com/watch?v=FwX0TcYJFi8
PM me if I can help further.