This is a very small camcorder, packing a load of features - its only slightly larger than a disposable camera. It has the usual features, and some gimmicks too. This baby can let you read your email and surf the web (provided you have a bluetooth-enabled phone). Seriously, its supposed to allow you to email (and save to a dedicated web-site) your videos. Annoyingly, you cannot use the Bluetooth facility for anything else.
It records to MicroMV casettes, using MPEG2 compression. This is both a good thing and a bad thing.
On the plus side, its a breeze to transfer the MPEG2 video to your PC (via USB or Firewire - or i.LINK as Sony like to call it), and the tapes are microscopic (you cant stick 2 postage stamps on top of one tape - youd smother it).
The downside is that (at present) you can only use the bundled MovieShaker software to edit (easily, that is - its possible to flaff around and convert the video a few different ways, but it takes time).
Assuming that Sony sticks with MicroMV, itll start appearing as a format on Video editors soon.
Also, the MemoryStick can also be used to record video and stills. The camcorder even has a popup flash (which caught me out the first time - Im not one for reading a manual).