Let's get one thing out of the way: you probably can't use this at 1080P resolution with the software you currently have, unless you really go out of your way to prepare for this. The camera is capable, but the computer may not be able to process it fast enough. Moreover, MSN and Skype doesn't currently support HD resolution as high as these, and most of time you will just end up seeing VGA resolution on your chats. Those capability will come to be more widely available, but as of now you do need commercial software and expensive hardware to achieve full 1080p potential offered by this web camera.
Pros:
-excellent build quality--the camera has a aluminum barrel and end cap that's 1mm thick. It has coated glass lens and coated lens filter glass. I cannot find manufacturing defects with the unit I received, not even a single hairline scratch.
-It's very portable: much more portable than many other competitive HD cameras out there, particularly from industry leader like Logitech. The rubberized foot/mount is also much smaller than those from similar Logitech offerings. Some may claim it reduces stability, but I found it working rather well clamped on top of my LCD monitor or sitting on the desk without the much added weight and bulk of other "more stable" designs.
-There's a tripod mount on the camera base. It seems like a minor point, but when you think about the capability of this camera, it's better than most of the DV cameras we had just a few years ago or even many of the digital cameras. There is in fact a good reason to consider using this little webcam as a studio camera, where the tripod mount can easily be appreciated.
-Excellent image quality: the sensor of this webcam is clearly larger in size than most(and also claimed by the description without going into the specific size) as it performs very well in low light. Field resolution is also very evenly sharp across the field, excellent for a web camera. Now auto focus is another story (see cons), but in terms of low light sensitivity and general color saturation, this camera compares well with the best webcams out there, if not already the best.
-wide angle coverage: its field of view is 71 degrees, or equivalent to a 24mm lens for a 35mm film camera. Wide angle on a webcam is very desirable and this one is not done at the sacrifice of image quality; and it is capable of focusing down to only 4".
-Microphone is extremely sensitive and has a full range sound pick up. It can detect very minute sounds across the room. You can also hear the entire frequency spectrum like none of my other contemporary Logitech is capable of. However, it is not without faults (see cons).
Cons:
-Auto-Focus -- I own another MS webcam from the latest line-up. This one also suffers from the atrocious AF problem. To say it is minor would be lying. I have had this camera for months, gone through two firmware updates, and the AF hunting issue remains (I can't believe MS isn't fixing it). What it does is that it will scan the entire focus range to hunt for subjects, and sometimes (if not often) it misses the foreground subject and instead focuses on the background, or even mis-focuses all together. It goes through the very annoying routine when the subject moves, adding to the irritation. This problem is more severe under low light conditions, though unless you are basked in sunlight, most indoor situations can be considered low light. None of the Logitechs I tried have this problem, and it's quite an Achilles heel for this otherwise excellent camera.
-Image sharpness: Not quite by the effects of Clearframe, which is what MS calls its image noise reduction technology, there's somehow a lack of sharpness. Don't get me wrong: the image is very saturated and clear, but when you put it next to a Logitech C910 for example, it is not difficult to see that image from C910 is sharper. Now that could very well be software sharpening effects from the Logitech, though *by comparison* the MS cam almost looks smeared. Some software control/adjustment would be nice and could potentially solve this.
-The microphone--on the box description MS said that there is noise reduction. However, it is very easy to notice that the camera microphone picks up EVERYTHING. If there is really noise reduction applied, it surely didn't work at all. There is no software control that lets me adjust/switch noise reduction, a feature that would be sorely appreciated particularly if you are using this for video conference.
-No 1080P recording capability with the enclose software--Granted, 1080P recording isn't quite ready for the masses and still require some expensive/powerful hardware, but to me it would make sense if the enclosed software should be ready to support it even if my hardware isn't. As of now the enclosed software only supports up to 720P recording, and in my experience it is more resource hungry than the Logitech. Logitech also includes HD video chat software called Vid, whereas here you will instead download MS's own Windows Live messenger to take advantage of video chat that's marginally better than VGA.
-The included rubber lens cover is an afterthought of an afterthought. It doesn't even stay on the lens, for some mysterious reason.
This is a very good effort at HD webcam, and has some of the key design principles covered: it's small, portable, well built, quality wide angle lens, sports a large sensor that's great at low light situations and a very sensitive microphone. However, the auto focus hunting problem is the 800lb gorilla in the room that's impossible to ignore. It's in my opinion the first thing MS should strive to solve before this camera can achieve its full potential, and so far that hasn't happened with 2 firmware updates already. A bright and saturated image would be as good as ruined when it is constantly going out of focus, wouldn't you agree?