Check out Canon's new Powershot camera, the TX1. It's the size of a deck of cards, does 7.1 megapixel images and shoots 720p HD movies in 16:9 at 30fps. At $500, it doesn't break the bank.

Although I use my Digital EOS for most of my pictures, It's always nice to have something smaller to carry around in my pocket. I lost my Digital Elph S500 skiing at Taos in January (dammit, I really liked that camera). I wont loose the TX1 however. I wouldn't be surprised if it took better video than my Canon Optura 200MC.