My budget is under 200 and I found a nice camcorder from sony, vr 800 model. I can only buy one first until I could afford the other later on, what should it be and why?

do you want to take pictures or do videos? A camcorder can take pictures, but they're not as good. A digital camera can take videos, but the videos aren't as good. Decide what your priorities are and get the camera or the camcorder based on whether you want good pictures or video more.

i would go with the digital camcorder, it will have a better lense because its made for video, AND, you can take pictures as well, I am having the same question right now, and i think i wil buy a Digital HD HDD Camcorder

Definitly camcorder. Why capture one image if you can film an entire event moment by moment?