It turns out that this Samsung camcorder takes video in 20 minute segments. It resumes video as a second segment... but only after about a five second loss of information. Samsung just confirmed that this is not a limitation of the FAT32 file system, but intrinsic to all Samsung cameras.
I can't believe it. I am tempted to take my Sony Hi-8 camcorder with me. That at least does not have these stupid limitations.
UPDATE: It appears that most camcorders being sold today that do not record to a hard disk have this limitation. This is so bizarre. From hunting around the network, this is again World Trade Organization stuff. It appears that WTO is either requiring this to avoid a tariff barrier, or requiring it on low end camcorders to discourage pirates using these in movie theaters.
UPDATE 2: It is not just Samsung. Sony's HDR-TD20V (a $1300 camera) also "Records in 29 minute segments..."
I don't know -- is it possible that the generation that these cameras are aimed are simply do not have the attention span to sit through anything that takes more than 20 minutes to record? I know that if you are making a movie, you are not going to have long scenes -- but doesn't anyone record weddings or, for that matter, depositions anymore?