This interesting little hybrid works equally well as a digital camera and a camcorder. The Sanyo Xacti HD2 follows up the innovative HD1 by addressing some of the concerns that peeved users of the earlier model. In particular, Sanyo has put significant effort into improving the low-light functionality of the HD2, which is a welcome enhancement. Beyond that, it's still a great HD handheld, capable of taking up to 3 hours of HD (720p) footage on a single 8GB Secure Digital memory card. Plus, Sanyo has knocked about $100 off the price tag. The 10x optical zoom and 7 megapixel sensor ensures that your still photos will very high-quality, and that combination camcorder/digital-camera devices don't have to sacrifice anything.