What gives better hd video quality, a DSLR or a camcorder?

I want to buy a panasonic 3mos which is around the £1000 mark but would a Nikon DSLR at half the price be just as good quality wise

You get what you pay for - that camcorder couldn't be sold at that price if you could get the same performance and additional still image photography capability at half the price by buying a DSLR.

Generally, in terms of pure video quality, DSLRs match camcorders. They may even beat them in low light situations.

DSLRs however have serious disadvantages in other parts that are relevant. E. G. The microphone usually is rather bad, you'd need an additional external one. The autofocus during recording video also often is noisy and not very smooth and slow, as it wasn't originally designed for video.

Also, most DSLRs use CMOS sensors, which exhibit the rolling shutter effect when recording fast moving objects. A CCD sensor in a camcorder does not.
http://en.wikipedia.org/...ng_shutter

DSLRs shoot such good video that even Hollywood movies are shot with them! But there are a couple draw backs. If you can work past them you will be stunned at the HD video quality!
Low light performance of DSLR cameras is 99.9% better than a camcorder. Even $3, 500 pro camcorders. Do a search on YouTube like DSLR vs camcorder and see what you can find.