For what you want, getting a camcorder is the way to go. Many new ones also allow you taking still pictures. Digital cameras allow you taking short videos, but they are not nearly the quality (or length) you would want for the arrival of your offspri...
You can download the operations guide from the Sony esupport website: According to Sony, the best digital still photo is 1152x862 (about 1 mega pixels) - compared to digital cameras (probably 3 to 5 mega pixels & higher).
Sorry! I too had nothing but problems with my sony digital camera. two repairs in 1 year while it was under warranty. They told me they would not replace it even though it was a lemon. Try to remove the programming and reload it. That's the only thin...