My r700 can't resolve details like hair and foliage -- it looks like mush no matter what setting I use, bitrate I choose, or how wide or tele the zoom is. Then I tried another r700 and it was WOW! razor sharp and detailed.

So I'm guessing something is amiss with my lens. As cheap as these cams are, would it be best to simply chunk this one and get another? The temptation to open it up and try to fix the problem is tough to ignore. :-)

If it cannot focus at any zoom setting or distance, but at least trys to, it may be that the internal back focus setting is off. Is the camcorder still under warranty?

Call Canon support/service and see what they say, then decide if any stated cost is worth it to you.