I purchased the VPC-CG20 two months ago at Radio Shack. I was looking for an alternative to the "Flip" camera at about the same price.

PROS

Good digital image stabilization at normal focus. This was the main selling point: Flip cameras provide no image stabilization, so slight shaking of the hand, especially when panning, is a problem. The Sanyo camera will give you better quality video at a similar price.

CONS

Image stabilization, while good at normal focus, is ineffective when you use the digial zoom (up to 5x), so videos will appear very shaky even with slight movement. The camera will have to be stabilized on a tripod if you're using the zoom feature.

If you're a novice (as I am), Sanyo xacti cameras will require a bit of a learning curve. This is why the Flip line of camcorders is so appealing: they come with their own editing software and are basically plug-and-play.

Note that video on Sanyo cameras is saved in mpeg4 format which means (since there is no included editing software) you'll need to convert the files to WMV or another format if you want to use Windows Movie Maker to edit the file. (Any version of Movie Maker for XP or Vista will not work with the mpeg4 format.) If this is your situation, AVS sells an inexpensive video format conversion program which is easy to use.

LCD screen doesn't display well in bright light.

Quality of still photos is poor, but that's not unusual for a camcorder. This won't replace your digital SLR camera if you've got one.

I've decided to swap this camera for the Panasonic HDC-TM55 which at a higher price tag (about $450) provides an optical (rather than digital) image stabilization feature that will keep the video stable even when you're using the optical zoom. I'll give the Sanyo to a relative. It really is a good camera for the price, and its digital image stabilization does work reasonably well at normal focus.