Lots of chatter lately about the Flip Video camcorder: it's relatively cheap ($180 for the super-duper model; less for the not-so-super models), tiny (about the size of the Nikon Coolpix 3700), and records up to an hour of pretty good video (better than the Nikon, judging by the sample videos on the Flip web site).
Rosie O'Donnell has four, and loves them.
I've been reading the fine print on the Flip web site, and two things bother me:
Apparently I can't just plug the thing into the iMac and use iPhoto to pull video off it; I have to go through the Flip Video Program. It's been my experience that when hardware companies try to write software, they do a terrible job of it. (The synchronization software that came with the Kodak DX3500 never did work very well, and the dock was completely useless. The video-transfer and -editing software that came with the JVC camcorder was just as bad.)
The videos are in a nonstandard format: you have to install the 3ivx 5.0 MPEG-4 decoder before they'll play on your computer. I don't think Grandma would like that very much: Here's a cute video of Jake & Sam, but you'll need to install some mystery software before you can watch it. What happens ten years from now, when I want to play my old videos? Will 3ivx still be around? Will they support whatever computer I have then?
Perhaps I'm getting all worked up over nothing. Maybe the Flip Video Program is spiffy & wonderful. Maybe 3ivx will be around forever. Maybe the Flip Video camcorder lives up to the chatter. Alas, at present there's no room in the household budget to buy one & find out. (No, this is not a hint for any of Santa's helpers who may be reading.)