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500 would be better,the quality is the same on both cameras tho and you dont need a flash or megapixles on a mini dv camera,its only for stills taken on the camera.
i have the gs500 and it works perfectly great, theres a sick feature that makes it movie like and not am but its good for its price, i bought mine on beachcamera.com for 679 or something, its worth it over the 300 because of the manual features
the 500 also uses optical image stabilization (OIS) while the 300 uses electronic image stabilization (EIS). EIS reduces the quality while with OIS you dont lose any.