I have a sportbikecam mount that bolts to my gas tank using 3 of the cap screws. In this position, small and light are the keys to no vibration. I use a Panasonic PV-GS29, and I couldn't be more happy with it. I can even tuck behind the windscreen and not be in the way.
Here is a video I shot using this setup, although it was compressed to MPEG1 format, so you can't get the greatest idea of quality.
I tried it on the passenger pegs of my bike one time, but the mount was not secure at all, so inevitably, the camera was shaken to the point of glitching. If you have a good mount, the camera will definitely do its part.
And at $135 on ebay, the camcorder comes in below your budget. Not to mention the fact that, while that package comes with a 1 year warranty, at that price, you wouldn't feel bad about anything happening to it.
I will caution you on one thing... and this is coming from an amateur videographer with about 14 years of experience... The higher quality the camcorder, the better the picture. The better the picture, the larger the CCDs (Larger CCDs gather more light, thus the cleaner picture and better low light ability). The larger the CCDs, generally, the heavier the camcorder. Camcorder weight is your worst enemy when you are fighting the vibration of a bike.
As for the camcorder itself... I have used it in several applications. I take it snowboarding with me, even on snowy days. (No, I don't even cover it.) I have a vacuum mount that I use on my car, and have mounted the GS29 in pretty much every location possible. I've dropped it in snow twice, and although I had to open it up and let it air out for damn near 3 hours, there was no permanent damage to it.
All of these videos are MPEG1, but it will give you an idea of my uses for it.
Snowboarding - Ktown compilation
- This was filmed using the camcorder as a handheld. Not the best editing job, I just never got around to fixing it. You'll notice the snow on the lens, too.
Cars - Vacuum Mounted
- This will give you an idea of low light capability on the camcorder, too. Admittedly, not that great. 1/6CCDs, you cant expect much more. Not to mention the fact that when I got home, the camera was completely soaked. It was cold enough so the Dew and damp air was affecting it at that point, as well.
Needless to say, she takes a lot abuse in my hands. I couldn't be happier with my choice.
Hope I helped you out a bit.