There a many compact cameras that have a wide angle type lens built in to give a wider field of view. It is generally marked on the box or in the specification on the site. You could add more field to an existing lens with a wide angle adapter: http://www.bestbuy.com/site/olspage...

It would be helpful to see an example of the type of photo you are wanting to take.
If low light is an issue I would suggest a D-SLR. The larger sensor and larger lenses gather more light and the ability to increase the ISO sensitivity will work well in low light. Some form of image stabilization either on the lens or body will also be a good idea.
It would be best to get a lens with a f1.4 or f1.7 rating. This will help give you that soft focus background you are looking for.
Canon, Nikon and Sony all have great entry level D-SLR cameras that will do the job. Also look for a 20mm or 50mm, f1.4 or f1.7 lens.

From what I can find about this issue is that it might need a Firmware update on the Camcorder. You can try following this link: http://support.jvc.com/consumer/sup...
...or try contacting JVC at one of their support numbers for a solution.

You will probably find a compact camera to be too limited for this kind of photography. The digital zoom would give you a jagged picture and the slowness of the camera in general will miss a lot of shots.
For this kind of work you will need a camera with a good optical zoom lens and some form of image stabilization, either in the lens or body of the camera. Also a camera that is fast at getting it's focus and other settings or can be set to full manual so it does not reset itself for each shot.
A D-SLR would be best for this kind of shooting. A 70-300mm lens would probably be good for the zoom. Both Nikon and Canon have 70-300mm IS Lenses (Image Stabilized) and Sony D-SLR cameras have Image Stabilization (Steady Shot) built into the body so any lens will be stabilized.
Stop by your nearest BestBuy and speak to an associate in the Camera Dept. They will help you find a D-SLR that will meet all your needs.