Most digital cameras throw in a movie-mode feature. The Canon PowerShot TX1 ($500) ups the ante by including high-definition video recording. It shoots widescreen (16:9) HD video at 720p resolution (1,280 x 720 pixels) at a rate of 30 frames per second. The camera also takes 7-megapixel still photos and features a flash, a 10x zoom lens, a stereo microphone, and a 1.8-inch flip-out LCD viewfinder.

Using the TX1 might take some getting used to, however. You hold the device vertically, even when shooting stills. Canon’s optical image stabilization should help keep your photos sharp and minimize the shakiness of your home movies.

The Motion JPEG (MJPEG) video-capture format uses less compression than other popular formats do, such as MPEG-4. So it has the potential to deliver higher video quality, but requires more storage space. The TX1 can fit about 13 minutes of HD video onto a 4 GB flash-memory card. It accepts SD, SDHC, MMC, or MMCplus memory card formats, currently available in sizes as high as 8 GB.