Camcorder: Sony DCR-TRV460 Digital-8 camcorder

Problem:
When I first start recording onto D8 tape, everything is just
fine. The image on the viewfinder is perfect, and when I play
back the digital tape, the image on the TV is also perfect,
as well as the sound.
However, after a few minutes of filming, a white flickering spot
begins to appear on the viewfinder, and is also on the tape as
it shows up on the TV replay. The sound is OK. The white spot gets
progressively worse, but you can still get a somewhat useable
recording - only with the annoying white flickering thing on the rest of
the tape. It looks like someone is shining a dim flashlight into the lens.

I REALLY love this camera - the resulting DVD+R copies were
GREAT - so I would like to keep using it if we can easily fix it.

If anyone is familiar with said problem, please post the solution,
and/or drop me an email to: Gene

I am assuming that the camera is now somewhat defective - so
I'm thinking about getting a replacement that writes to the crummy
little 3" DVD+-RWs - so I can shoot a lot of 30 minute DVDs, then
copy them over to larger DVDs on the Liteon 5005 via Firewire.

Question:
What is the BEST DVD camcorder that will write to the 3" DVD rewritable
DVD-RW media? I could care less about an LCD display - but I guess old
timers like me are in the minority:-) Just want to end up with the BEST
large DVD disk with the best video & sound. I would like to stay in the $500
range.

BTW: I will most likely put this camera on eBay.
LOL - and I have LITERALLY hundreds, possibly a thousand or so, of used
8mm analog camcorder tapes for sale as well. They worked great, just
switched
to D8 tapes.

THANKS,
Gene