With the innovative Sanyo Xacti VPC-C40, the days of digital tape are over. Pop in an SD card and start recording high-quality MPEG-4 video, or take stunning four megapixel stills--all with a device that fits easily in the palm of your hand and runs on a rechargeable battery.

At the heart of the C40 is a 4.23-megapixel CCD that records MPEG-4 digital video at 30 frames per second. The lens offers a 5.8x optical zoom and a 12x digital zoom, and to keep those shots steady, the unit features an image stabilization system. The C40's 1.8-inch LCD display flips out from the camera and rotates up to 285-degrees on an axis for taking great video or still images from otherwise difficult-to-view positions. And when not in use, the screen tucks securely back into the side of the camera for a pocket-sized portability and convenience.

As with all of Sanyo's previous digital media cameras, the C40 can record still images in addition to video. While conventional digital camcorders can often snap stills, they are usually low quality. And while conventional digital cameras can record short video, they are frequently grainy with a slow response speed. The Xacti C40 can do it all, recording both still images and digital video on the same unit. You can even snap a still image while recording digital video with the simple press of the shutter button. When recording video you'll get an hour of footage on a one gigabyte SD card (sold separately). And because audio is important, too, the C40's wind noise reduction system helps cut out unwanted microphone noise while the unit records audio in high-quality AAC-format.

The C40 lets you choose from several automatic exposure modes including auto, sports, portrait, landscape, night view, fireworks, lamp. Meanwhile, a built-in three-mode flash makes getting still images in low light situations easy, while 15 adjustable manual focus settings let you get creative with your compositions. There's also a super macro shooting mode that lets you focus down to a distance of one centimeter.

With convenient, menu-based settings, the C40 has been designed from the ground up for ease of use. There's even a talking navigation guide for first-time users. And when you're ready to connect the camera to your computer, you can use its high-speed USB 2.0 connection to quickly transfer footage from the camera's SD memory card. Software is included for video editing and there's also an S-video output for viewing footage directly on your TV. Printing stills from the memory card is a breeze, too, as the camera is PictBridge compatible, meaning you can print directly to a photo printer that supports the PictBridge standard.

What's in the Box
VPC-C40 camcorder, li-ion battery, AC adapter/power code, AV cable, USB cable, lens cap, hand strap, and Sanyo Software Pack 7.4 CD-ROM.