Its amazing the speed of change in consumer technology, look at this full 1080i HD capable camcorder from Sanyo for £410! http://cgi.ebay.co.uk/ws/eBayISAPI.dll?ViewItem&item=130167416272
It records to SD (including SDHC) card and can do HD at 30fps and apparently 720HD at 60fps!! Sounds like a bargain.
Theres a demo of the video quality here in a music video recorded using the Sanyo HD1000
