3 chip camera will have a better picture.
As for the capturing of the video and editting. This depends on what software you use and what format it captures at. Some software will give you a choice of formats, some will not.
The software should capture to an AVI format. The flies will be very large but have the best quality.
Here is a link that may help. John
I am wondering if the video quality advantage of upgrading my camcorder to a 3 chip type would be negated by the time I am done downloading to my computer, editing, and then saving to hard drive and burning a dvd. Would I get the benefit of spending the $$ on a new camcorder after all this digital manipulating and compression?