What is the difference between these two modes, in practical terms? I know some functions are limited in one but not the other, which doesn't make sense to me. Can someone explain this better than the manual (which is unimpressive at best)?

The differences are in the way certain functions operate, that's all.

FILM CAM: synchro-scan shutter expressed in terms of degrees, rather than fractions of a second. Also, variable frame rates enabled.

VIDEO CAM: synchro-scan shutter in fractions of a second rather than degrees. Also, certain modes like pre-rec, interval rec, etc. are enabled.

Sounds like a whole class is needed for the film mode.

Thanks Barry
Out of curiosity, is there any real technical reason why they couldn't have enabled the pre-rec/interval modes in film cam, and varible framerates in video cam mode?

well, they are starting to do it now. I think it had to do with the technology Dylan, they prolly just figured it out and soon enough it'll be cheaper and most dv cams will have variable speeds. Just a matter of time. Same thing happend with the 3chip revolution, now a lot of 1000 cams are 3chip. It'll come around :D

Thanks Barry
Out of curiosity, is there any real technical reason why they couldn't have enabled the pre-rec/interval modes in film cam, and varible framerates in video cam mode?
I don't know the answer to that one, that's a question for the Panasonic engineers. I don't know why you can't select News Gamma when in FILM CAM mode either -- it's just a gamma curve, right? Why do you have to be in 60p/60i and VIDEO CAM mode to select it? Don't have the answer on that one...