We have a Sony Handicam and it's only a year old but the vision from it is pretty crap. We want to take video and photos of us kiting this season.
So my question is:
Should we buy a better video camera that can take good stills or should we buy a digital camera that can take video?
What are some thisngs we should look for?
What are people using?
Only want to spend around $1000ish.

We also do a fair bit of scuba so one that can be put in a housing we be good too.

What do you think?

I have been thinking about this camera

http://sanyo.com/xacti/english/products/vpc_ca9/index.html



9Mp stills and HD Video waterproof to 1.5m.

It's what I need for amateur kitesurfing stuff.