Most camcorders have an external mike jack.  You might try buying a
good microphone and plugging it in; if it's still too hot you can build
up a resistive pad (volume control) to place between the mike and the
jack and cut the level down to something the recorder can handle.  You
can probably find what you need at (shudder) Radio Shack; their cheapo
condenser mikes are pretty good soundwise, if a bit fragile, and
they'll have the parts to make a pad.

The external mike gives you another plus: camcorders all have "auto-
matic record levels" [ARL,AGC,AVC], which compress all the dynamic
range out of everything.  By reducing the mike volume sufficiently,
you can get below the compressor's threshold and restore some of the
dynamics.  This may or may not be successful, as the internal elec-
tronic noise may become objectionable, but it's worth trying.  As with
all experiments, "Your mileage may vary".

If all else fails, of course, you might try another camcorder.  Mine
handles loud sounds fairly well; indeed I'm a little surprised you're
having so much trouble.  Your camcorder has sensitive ears!

Good luck,

John Ward