I've been researching both at http://www.camcorderinfo.com and you'll find a lot of useful info about both models. I looked at the GS500 yesterday at BB, and found that I hated the position of the joystick controls, and that the joystick was a real pain to use, with tiny incomprehensible icons and confusing layout of the menu on the LCD. The salesperson was of no help either in trying to figure it out. BB doesn't carry the HC96 in their stores, but looking at the HC46 it was much more logically laid out, and the touchscreen sure does make it easy to use. Apparently many of the useful functions are buried and need to be changed on the menu, but there's enough info on the camcorderinfo site to figure it out. I'm likely to buy the HC96 soon, still sifting through the specs (and the weaknesses). I'm thinking of using Amazon as they have a good price, but Crutchfield has a 3-year warranty that actually covers 'accidental damage' along with an Outlet price that matches the Amazon one (about $620). Let me know how it turns out for you.
I have a Panasonic GS-150, Has 3CCD like more expensive models.Terrible in low light.I took movies of my Grandson`s karate indoors in a gym, everything came out dark with a red tint.Outdoor movies are good in Daylight.This is my third camcorder,other two were Sony, both captured MUCH better in low light, plus with Nightshot can capture with infrared in total dark,but movies will be green.The 3CCD splits the captured light into Green,Red, and Blue for better color but I can`t tell the difference.Unit is easy to use,light weight.Sony is coming out with 3 Hard Drive camcorders next month, one with 60 G.That`s where I`d go.
One thing to consider about the hard drive camcorders is that it records at a higher compression than traditional DV camcorders. Also, it records in MPEG so you've also lost your control over the AVI to MPG conversion step. If quality is your number one concern, then it may not be your best bet.