The JVC GZ-HD40’s strength lies in its effort to reach out to several types of users. The 120GB hard drive should satisfy even long-term vacationers. The camcorder offers loads of manual controls, but also includes a full auto mode that should accommodate most types of shooting environments.

Experienced users will appreciate the level of control the GZ-HD40 offers. Manual aperture, shutter speed, white balance, and several other controls are all included. You’ll also find the best manual focus on the market. Unfortunately, these advantages are offset by the interface, controlled almost entirely through the joystick. A joystick, in and of itself, is among the best types of input devices, but it can’t offer the fine control that high-end users demand. A predecessor, the GZ-HD7, offered an excellent focus ring and more external buttons, features sorely missed in this generation. The handling limitations are compounded by a sluggish and confusing menu design.

The 120GB hard drive will surely be one of the key selling points for the GZ-HD40, but there are inherent dangers in users becoming complacent with all that onboard storage capacity. Eventually, most hard drives fail. Our advice: back up, back up, back up. JVC makes it a little easier by selling standalone DVD burning stations.

Performance (read in-depth lab performance data at CamcorderInfo.com)
The JVC GZ-HD40 is far and away the best-performing camcorder in the high-definition Everio series. Our lab testing encompassed both the MPEG-2 TS and AVCHD compression settings. Overall, it’s clear that the MPEG-2 option is the choice for maximum image quality. The resolution, or sharpness, is very high – among the best we’ve seen. Colors are more saturated compared to other similar camcorders, but that intensity seems to please consumers. Green grass, blue skies, and other colors really pop.

AVCHD is more highly compressed than MPEG-2 TS. This means that you can fit more footage in the same amount of hard drive space. As you might guess, the higher compression does affect image quality. Subtle color gradations become less smooth, and fine detail is reduced. We always recommend shooting in the highest quality, but if you're short on disc space or concerned with video editing software compatibility, AVCHD performance is still very good.

After years of woes, we can finally stand by JVC as a strong low light performer. Traditionally, JVC used three smaller CCD sensors, which produced great color in bright light, but lackluster results in low light. The switch to a single, large CMOS became a huge boon for low light performance. Sensitivity nearly doubled since the previous generation. From a practical perspective, this means that indoor night shooting in a typically underlit American house should not pose a problem.

Comparisons (read in-depth comparisons at CamcorderInfo.com)
If you love everything you’ve read about the GZ-HD40, but the price seems steep, you’ll want to consider the GZ-HD30 ($999 MSRP). This camcorder is identical in every way to the HD40, but with a smaller, 80GB hard drive, and $200 price drop. The big competition with either of these JVC models is the Canon HF10 ($1099 MSRP) and the Sony HDR-SR11 ($119 MSRP) / HDR-SR12 ($1399 MSRP). The Canon HF10 has a much smaller internal memory – only 16GB – but brings a lot of power to the table with 60i/30p/24p recording modes, great manual controls, and killer performance. The Sony HDR-SR11 and HDR-SR12 are nearly identical hard drive camcorders, 60GB and 120GB, respectively. Also exceedingly good performers, the Sony camcorders offer the best handling of the models we've tested.

Try before you buy is an appropriate maxim here. The GZ-HD40 is the best Everio JVC has produced to date, but the interface may frustrate experienced shooters. The price tag may dissuade beginners, but its sibling model, the GZ-HD30, offers nearly all the same benefits for less money. Overall, the GZ-HD40 is on our shortlist for one of the best camcorders of the year.