I have that camera, it was on sale at Target a couple weeks ago for $120. I highly recommend it.
When everything is lit well enough, you get a great HD picture. Low-lighting isn't so great, but with digital cameras, it never is. If you like to wave the camera around a lot in your hand like a crazy person, you'll drop some frames, but I don't think most non-crazy people will find this problem. Also, the mic on the camera isn't so great, but it's definitely useable. Almost forgot, optical zoom only. Optical zoom is never a good thing, but this camera handles it nicely.
Aside from the great picture, another plus about this device is it's size. This thing is small enough to stick in a purse or cargo pants pockets. It's about the size of many point and click still cameras.
It records to Quicktime format on an SD card, so I dunno if that is a problem for Windows users, but the movies imported into iMovie for me with no problem. If you're using iMovie, remember to specify that you are working with HD or Widescreen DV video, otherwise you'll end up with standard definition full screen.
I highly recommend this camera. For the price, you simply cannot go wrong.
