Others have commented on many aspects of this and some have provided you with loads of technical details that can be easily read at the SONY website, I'd like to comment on how this camera is used.
Recommend this product?
I've got two small children and the memories of them are precious. I had a Canon camera that had RAVE reviews and lost loads of opportunities for pictures and video because the thing uses sonar to focus and is SLOW. The Canon is 3.1 mega pixels for photos and this SONY is 2 mega pixels. Guess what - the SONY pictures are consistently clearer and best of all are actually of the scene I WANTED to photograph! The Sony uses lasers and is super fast in focusing. SO if you want to actually capture a moment (not the one after the moment) then this camera is a great choice.
The other pluses are that its got both USB and Firewire connectors with the ability to save video to the memory stick too. Moving the video from the camera to the computer is a snap with nearly any software but SONY provides some nice software too. Nightvision sounds kind of military or hunting but I've used it to take bedtime movies of the kids without waking them back up with lots of light and they look fine (even if they are green and white).
Lots of versatility, super detailed controls, easy to use, lots of optional add-ons (flash, lens attachments, mics, special tripod with controls for the camera on the tripod handle, etc.). Great camera!
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Amount Paid (US$): 1200
Recommended for: Trendsetters - Hip and Stylish Gadgets