Why camcorder videos do not look like the movies we see in cinema?

First issue is the equipment. There is a reason a cine camera costs upwards of $100,000. Some very fine cameras are out there in the $25,000 range. And $3500-$10,000 has some cameras that can exceed HD broadcast specifications. Your $200 flip simply can't generate the data needed for a workable image. And the same is true for the lighting, audio, and editing capabilities. Then there is the production. Sit through the credits sometime. All those people AFTER the actors are skilled professionals that worked over the sound, set, lighting, editing and other aspects of movie production. Thousands of hours go into most movies worth watching AFTER the footage has been recorded. For a contest, pick your weight-class first. Select contests limited to amateur level equipment. Then learn the technical limits of your equipment and how to improvise (especially with set and lighting). Learn the fundamentals of framing a shot, recording audio, and camera movement and changing camera angles. Watch TV and Movies, even the commercial with an awareness of all the camera angles and how often they are changed. Once you have an idea, watch how others have done something similar. Look for shots you can do (May have to avoid the helicopter with the CineFlex, but you may be able to get camcorder up in a lift-truck or rented Cessna).

you need Sony Vegas Pro. It allows you to handle audio hollywood style. you need separate tracks for dialog/over dub (one for each person speaking), tone/nat sound, foley effects, sound effects, back ground music (stereo). the sound track in a hollywood movie does not "happen" it is created, and i suggest getting a separate audio recorder, like an Olympus LS10. Next, you need to work from a script. this allows you to setup critical camera angles and lighting required for the scene in advance of shooting. the last thing you want is to see when you start shooting that the mood is entirely wrong. and frankly it would take you decades of "watching movies" to figure out how it is done, you really need to take some media production classes at the community college. By taking classes you will meet other people with similar interests and that will help you round out a crew that is competent.