I love my new(ish) camera!
Panasonic DMC FZ7
Takes an amazingly high quality photo (2560 x 1920 pixels in 4:3 format and 1920 x 1080 pixels in 16:9) and has an excellent video setting (320 x 240 pixels @ 30fps, apparently).
12x optical zoom (48x digital, but who uses that?), 6 megapixels, and loads of other excellent features - have a butchers! http://www.dpreview.com/reviews/panasonicfz7/
I got mine from eBuyer for about £150-£160, and a couple of 2 gig memory cards for about £6 each!
G x