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(Not sure which digital camera to get? Check out our comparison guide.)
A compact, multi-function Digital camcorder for less than £150 isn't quite as mindblowing a proposition as it was a year ago, but the ingenious boffins behind these glorious gizmos aren't content to sit on their laurels. The DV5 builds on the success of the DV4 and adds several enticing new features, including MPEG-4 which lets you capture high quality video with smaller file sizes.
In addition to its rather classy, 'art deco'-inspired styling, the DV5 boasts a 2 Megapixel (1600 x 1200) CMOS sensor, 1.5" TFT LCD screen and a built-in loudspeaker, which comes in handy when reviewing footage or listening to MP3s and the brilliant insights you have captured on the integrated voice recorder. Downloading footage to your computer is a doddle, thanks to support for the lightning-fast USB 2.0 standard. And it also works as a digital stills camera and webcam. Amazing!
But what exactly is MPEG-4, and why is it so great, you are probably wondering? We're so glad you asked. Basically, MPEG-4 is the new industry standard for video encoding, which without going into brain-meltingly technical details basically means that you can now record higher quality footage while taking up less memory. The 16MB internal storage of the DV5 can be expanding easily by inserting an SD Card. With a 256MB card you will be able to record over an hour of footage. Pretty cool, huh? Never again will you need to worry about running out of space while filming your latest, completely improvised masterpiece!
As if the built-in features weren't impressive enough, the DV5 comes bundled with a staggering array of accessories including a dinky little tripod, case, USB cable, cinch cable, headphones, carrying strap, hand strap, 2 batteries, quick start guide and software.
The DV5 may have more features that you can shake a memory stick at, but it manages to remain remarkably compact, fitting snugly into all but the smallest hand or pocket. So you have no reason not to take it with you everywhere - you never know when it might come in handy!