The home movies of your childhood probably look a lot like those at the beginning of the old "Wonder Years" TV show: grainy, jumpy, no sound. When Dad wanted to show off the family memories he'd captured, he hauled out a clattering projector and unrolled a balky screen at one end of the living room. Editing home movies meant slicing and splicing.

Today, your family memories can look like they were recorded in Hollywood instead of at home. You can play them—in stereo—on your TV set, or e-mail snippets to Grandma and Grandpa. And you can edit today's home movies on your computer, adding special effects to rival Star Wars.

Even if you already own a video "camcorder," the time may be right to upgrade to state-of-the-art home movies, which these days means digital video. For not much more than you paid for your VHS camcorder five years ago—$700 to $1,400—you can get a cutting-edge camcorder that stores ultra-clear footage on digital cassettes. Some digital camcorders are compatible with older tape formats, too: If your brother-in-law has a stack of 8-mm cassettes lying around the house, they'll play fine on one of Sony's Digital8 cameras, for example.

The digital video revolution promises to do for your home movies what programs like Family Tree Maker have done for your genealogy record-keeping. By turning your memories into digital bits and bytes, this technology makes it easier to record, work with and share your family heritage.

See how digital video compares with the familiar "analog" video:

• Digital video is typically brighter, sharper and more colorful than analog video.

• Digital video is ideal for copying. Because digital camcorders convert images and sound into computer-style 1s and 0s, duplicates look just like the originals. Analog footage looks less sharp when copied, and is prone to distortion.

• Digital video is the most computer-compatible. With the right camera and computer, you can quickly transfer footage on and off your hard drive without loss of quality.

In short, digital is the best option if you can afford it. If you're on a budget, analog camcorder options abound. But be warned: Analog cameras account for an ever-smaller slice of the market, and they may go the way of your dad's home-movie camera sooner than you think.

Digital do's
So have we sold you on going digital instead of old-fashioned analog? When you go shopping for a digital camcorder, look for these features that can make your home movies look like Hollywood extravaganzas:

• Zoom and digital zoom: Good camcorders have zoom lenses, plus digital enhancements to get you even closer.

• Optical image stabilizer: If you're a bit unsteady, this feature makes for smoother, more stable pictures.

• Special effects: Want to get creative? Digital camcorders provide built-in special effects such as "fade" and "wipe."

• Still images: Get double duty from your camcorder by snapping still pictures as you would with a digital-still camera.

• Enhanced batteries: Camcorders drain batteries quickly. Features such as Sony "Stamina" boost battery life.

• FireWire capability: Digital camcorders have FireWire or "i.Link" ports for transferring footage to PCs or Macs.

• Composite and S-video output: Play your video on your TV or transfer it onto an analog VCR or camcorder.

• Analog line-in: Get footage into your digital camcorder, too. This feature works with TVs, VCRs and analog camcorders.