The concept of a palm-size DV camcorder that can record 720p high-definition video while retailing for less than $800 is certainly appealing, and the Sanyo VPC-HD1 promises exactly that. While it will certainly find a market, the overall product is not everything you could hope for.

This digital media camcorder is certainly stylish and compact. It weighs in at less than 8 ounces, and it achieves this by storing video and stills on SD memory card, as opposed to MiniDV or DVD media. The foldout 2-1/5-inch OLED (Organic Light-Emitting Diode) screen rotates 285 degrees and delivers a bright 210,000-pixel image.

The VPC-HD1 has a 10X optical/10X digital zoom function with digital image stabilization, and in addition to 1,280X760 HD video, it also records 5.1-megapixel digital stills. The resulting stills quality is excellent, comparable to the quality obtained from many dedicated 5-megapixel cameras. The VPC-HD1 even includes a pop-up flash.

On the other hand, the VPC-HD1's video performance is disappointing. When viewed on an HDTV, video recorded in ample light displays good detail and well-saturated colors. In less-than-perfect light, however, the images exhibit excessive grain, and the quality appears less impressive than what you'd get from even a budget-level MiniDV camcorder.

On a more positive note, this digital camcorder comes with just about everything you'll need, including a docking station with USB, component video, and S-video connections. It doesn't come with an SD card to store your video and stills, however. You'll probably want to opt for at least a 2GB card, which will hold 42 minutes of HD video or 2 hours of 640X480 standard video. The price of the Sanyo VPC-HD1 is appealing, but the video performance lacks the quality you should expect from a high-definition camcorder.

Pros: Ultra-compact design, excellent digital stills, high-definition recording at a great price
Cons: Video performance lacking, poor low-light performance, package doesn't include memory card