Hello Anil - thanks for your message 
If I could discuss the zoom first of all, when zooming into an image every single hand movement will become greatly exaggerated as the zoom gets closer and closer to the object and the actual impact of pressing the zoom button can add to this (I usually try and zoom before I start recording, although I understand that this isn't always practical). The built-in stabilisation will try and reduce this as much as possible.
Also, as this camera has 25x optical zoom, when you go beyond this level and the digital zoom takes over, there will be a loss in picture quality. If you take a look at page 57 of the manual (http://pdf.crse.com/manuals/4170897141.pdf) you can adjust the digital zoom setting to have a maximum level to prevent you accidentally reducing the video quality by 'over zooming'.
Regarding the 'buffer overflow' issue, I would defintely advise experimenting with recording on the hard drive and on SD card to see if you encounter this issue. Your suggested SD card will be ok for this camera as it supports Class 4 and above. If you continue to encounter this problem whilst recording, please let me know on here and I will highlight this to some colleagues.
Thanks again,
Simon