which camcorder will help me digitize 8mm and Super8 home movies

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Hi.  I am new to the list and a photography novice, but I do have the help and advice of my son who is a good amateur photographer.
 
I have many, many home movies on 8mm and super 8 film which I would like to preserve and digitize.  I have never been able to afford the cost of having this done professionally.  I recently acquired a Goldbeam Studio VII Series "All in one transfer films/slides to video tape".  To use it, you project your film or slides onto a small screen on the side of the device and put your camcorder into an opening on the front of the device.  The box advertises:  Image transfer system with stereo sound mixing, video processing enhancer, and color filter; Built-in macro lens for use with any camcorder; High resolution mini-screen.
 
I would like to digitize them and turn them into DVD movies with using my Pinnacle software.  I realize I will probably loose quality over having the films professionally done, but I will enjoy them a lot more than I do with them just sitting in a box. 
 
My question is:  I would like to buy a digital camcorder that would work well for this project as well as for general usage.  I need to stay under about $500-$600.  I have been looking, read consumer reports, etc. but am confused.  Also, the opening where you put the camcorder is 1 3/4 inches in diameter, and most of the ones I have seen have much smaller lenses now. 
 
I would appreciate advice.
 
Doris

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