Video Cam - Sony DCR-HC96 - Video Quality

Hi,

I am looking for some feedback on my video camera. Basically, I'm not pleased with the video quality I have a Sony DCR-HC96. It has 3310K (gross)/2048K (actual) pixels. I would think this was enough to make decent videos, but I seem to have noise when I play it back. I am wondering whether I'm thinking this through correctly.

I typically play video back with my overhead data projector or put it onto my PC for editing.

It says it has 530 horizontal lines of data. Most of what I do is 720x480 or 640x480. Is it too many lines of horizontal data that it's compressing it? Why would it appear to have static/noise in the picture?

Thanks!

~Mani