The Casio Exilim EX-Z1200 Digital Camera is fantastic for still pictures and video.
Previously, I used the Casio EX-Z850, and I was very happy with it, so when the newer version was released, I had to get it.
The Casio EX-Z850 has 8.1 Megapixels, while the EX-Z1200 has 12.1 Megapixel CCD for superior high-resolution photo imaging.
Just like the previous camera, the EX-Z1200 has a big display in the back for viewing, though the newer camera has a larger, super bright LCD display at 2.8-inches wide.
The camera enables you to insert an SD memory card, so you can easily add 2 GB or so of space for pictures and video at a modest price.
There is also a spot at the bottom of the camera to connect to a tripod. You can pick up a desktop tripod for $10 or so. I got mine on ebay.com.
This is my favorite line for digital cameras, and I definitely recommend it if you are interesting in capturing video with your camera. It has replaced my camcorder.

Casio EXILIM ZOOM EX-Z1200 – digital camera $323.95
12 MP Digital Camera Black