For the price of those nasty, digital-zoom, throw-away Flip cameras you can instead get this excellent camcorder with a surprising number of features and smooth 10x optical zoom. My observations exclude most of what other reviewers have already mentioned.
You can set most optical settings manually, like exposure, aperture, shutter, and focus. Processing-wise you can adjust white balance, resolution, and quality manually. If you just want to point-and-shoot you can press the "Easy Q" button and the camera will set these up for you. It even decides whether to turn on the anti-shake feature if you want it to. The anti-shake feature is the best I have ever seen and you're going to need it because this camera is so light there isn't enough weight ballast to steady your hand.
The camera does not move smoothly between lighting levels. I'm not sure if this is the aperture or the light sensitivity setting of the camera's sensor. You'll see the light level click up and down on scenes that subtly change brightness. If you're worried you can always set the aperture, exposure, and shutter speed manually and "fix it in post" as they say.
A word about the video format. The video files are standard MOV/MP4 files in H.264 with AAC audio. The 1080i videos play on anything fast enough to decode them, but remember, if your computer isn't fast enough to decode them, it's not going to work well. This camera uses many optional but highly CPU-intensive features of the MPEG-4 AVC H.264 specification like CABAC, VBSMC, QPEL, and more. Your computer has to be really fast and have enough memory to handle these features and your software must be able to decode these features, too. For example, The KMPlayer on MS Windows has trouble with videos produced by this camera because it doesn't implement some of these features correctly. However, Windows Media Player plays them perfectly. Similar problems happen on MacOS simply because these optional H.264 features aren't tested well there. You can try using a lower resolution or setting the "quality" of the recording to a lower setting where some of these features are omitted or used with less CPU-intensive parameters.
For storage, this camera only uses SDHC cards for storage so you're going to need a fast card. The camera comes with a "Class 6" card, therefore that should probably be a safe choice for any use. I have not yet run into problems with an HP-branded "Class 4" card I once bought by mistake with a huge discount. I expect that I will run into a problem in high-detail, high-action videos with a fast shutter speed, or in some situations that the "Easy Q" feature selects data-heavy modes for me. The user manual says that the camera will warn you if your card is too slow (the Class) and suggest to use a lower resolution. The camera is also, somehow, able to detect single- and multi-cell cards which I interpret to mean that some cards have one memory chip and others have two. I don't know how you discover this when shopping for cards. The manual says that if it finds a multi-cell card it says it restricts the speed but doesn't really say what happens. Likewise, if it finds a slow card (the "class") it will warn you to reduce the resolution, but the manual does not say what "Class" you're supposed to buy.
There are quite a few of these cameras in the refurbished market. My camera has no flaws and these are probably store returns from people whose home computers cannot play back the 1920x1080i videos that this camera, like other high-feature MPEG-4 AVC H.264 cameras, can create.
**EDIT** After a few months and several hours of recording this camera is still excellent. I still record everything at 1920x1080i and to edit that effectively it really means that I need a new computer. This isn't a knock on the camera, of course, but it's the only major complaint that I have.
The one minor complaint is that you have to essentially "restart" the camera to exchange SDHC cards--opening the door to change cards turns the camera completely off, so you probably want to get an SDHC card reader and use that instead of the camera to manage your SDHC cards.
Also, the SDHC cards must be formatted *by the camera* before they can be used. It only takes a few seconds but it does erase the card. It places two 20 megabyte files named "VIDEO0.IDX" and "VIDEO1.IDX" in the MISC directory which I believe is used for the quick access to review videos on the card from the camera's screen.
Finally, I did encounter a SDHC card that is multi-level cell. It is a Class 6, 8-gigabyte Patriot SDHC card. The camera warns me to switch to a lower resolution when using this card. Note that this is a Class 6 card, and the reason it's not fast enough is because it is a multi-level cell card. I have cheap Class 4 cards that work perfectly so this could be a potential problem when shopping for cards. I don't know how to identify multi-level cell cards at the point of sale but I do have one such card that won't work with this camera.