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I would think a ZOOM or Iriver type digital recorder would be better for this application. You can probably find a Sony D3 for $100 or so but the H2 (or is H4) is only like $200 I think. check bh photo or Dale Pro Audio...
Video guys I know though would use separate mics and the later patch the audio onto their video. The mic on the camera is acceptable but not great.
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