Does not come with a memory card, get one from Walmart, Kmart, OfficeMax, lots of places. I got "Lexar high speed Micro SD HC 8 GB" Amazing how thousands of pictures and videos can fit on a card the size of my little fingernail.
Yes, it does. It makes HD videos in 720p definition, and you can shoot up to 20 minutes of video. I shot a short video of my dog, and the picture was very good! The sound was good, too. (The onboard speaker is tiny, but you can upload your video to a computer hard drive to get better sound.)