This is really a digital camera, but it also takes digital video with audio too. It was under $200.
On the computer, the pictures and video look flawless. The video was way better than I ever thought it would be, although it's in AVI which takes up a lot of MBs. The video obviously isn't flawless, but it doesn't look pixilated at all. It has 3x optical and 10x digital zoom, with 3.1 megapixels.
The internal memory holds 16MB, which is 1 minute of video or 43 pictures. Plus the memory cards purchased separately boost that time a lot. A 128MB card will give you 8 minutes or tons of pictures.
It's very small too, so it fits in your pocket. It comes with very practical software which makes everything a snap. A very cool feature is an effect that turns any photo into a colored cartoon.
Does anyone else out there have a camera that takes video? I'm pretty sure that there are many better ones out there, considering that my mom got it for me for christmas.