I think it depends a lot on your budget and the intended use of what you're shooting.

If you're going to want stills that you can use in print at large sizes (such as full page in a magazine), and you have the budget, I'd go with an SLR that's at least 8 MPixels or better (Canon, Nikon)... the optics seem to be a little better in the SLRs than even the best of the others... and you have the option of buying different lenses for different shooting situations... but they can also get pretty pricey.

I echo JustMe on the coolpix 8700, and have also been really happy with the Olympus midrange (8080) which seem to have unusually good optics for non-SLR cameras.

On the camcorder side, we opted for the Panasonic DVX-100a (about a year ago) after spending forever trying to decide. And the Sony HDR-FX1 would get a very serious look if I were buying today, since HD capability is going to be important in another year or two.

But if you don't want to spend $3500 on a camera, there's also a 3 chip Panasonic, the PV-GVS200, that's under $1000 and has pretty amazing quality.

And then, of course, there's audio, lighting, reflectors, and all that good stuff to think about