Check to make sure the Canon I suggested has pass through, I know my ZR 100 does, but I didn't think to look at my buddies and make sure - just assumed it did.
I looked on Amazon.com for price comparisons - BEWARE!!! google the retailer for any negative feedback - there are some REALLY shady camera sellers out there. My third camera from Beach Camera with no complaints, but I'm not making a recommendations here.
Pass through in my opinion is a must. I've put all of my vhs's, 8mm tapes, etc on DVD's (a stand alone dvd burner is also a really nice thing to have for about $100).
Hope your daughter has fun with it!