@Imran; if you are really not wondering to save some money from the budget you told for it, then I'd say "GO" for "Panasonic HDC- SD60 Camcorder".
You won't be compromising with it. HDC-SD60 is the better camcorder with all the great features. It would be perfect for your home/party/function event making great. And the same for your still images to get them printed out of your PC to put in your hand held album.
but if you have any thing in your mind to save some of the money and willing to get any sort of good Cam, then you could choose from the list deffury provided above.. they are just good for capturing your events just in a great way and/or great quality of still images.
More specifically if your primary purpose is to record videos then go for a Camcorder. And if you are going to watch your videos an HD TV-LCD or some thing like that, then absolutely go for
HDC- SD60 for the best quality between others above. Otherwise if you are going to use your regular TV to watch the videos then I would suggest to save your money and choose one from the Camcorders deffury listed
Second if your primary purpose is gonna be the still photography then you should choose one from the following Digital Cameras in order
1- Panasonic Lumix DMC-FZ38
2- Panasonic Lumix DMC-TZ10
3- Nikon D3000
4- Panasonic Lumix DMC-G1
These are also collected from the deffury's post. Others are not having the capability of recording videos, if I am not mistaken..
I would like to mention that I've spent over 2 hours reviewing the above cameras. but I just compared them with some primary functions for a camera to be the best in them. e. g. Resolution, Optical Zoom, Lens, Image Sensor etc....
General Tip: Always use "Optical Zoom" if you ever want to use the zooming feature. Using "Digital Zoom" is not more than making the picture quality worse, either in video or in still image, instead you can do it better on your PC in any image editing software e.g. Photshop.