I want this mostly to take video with audio, but I don't want to carry around a camcorder because it's larger, heavier, and more expensive, though it is a good option. So please tell me what you think, a camera or camcorder.
Anyway, in a digital camera the main features I'd consider are: the megapixels, ISO or light sensitivity, image stabiliztion, video resolution and frame rate, how long I can record video and audio, and storage by memory card.
The lesser features would be: optical zoom lens, LCD screen, red eye reduction, basic editing.
If you really want to shoot video a digital camcorder will be better than any digital camera. You'll have more flexibility and more recordable time. But some folks do sucessfully use digital cameras for video. Most of these will run around $300 to $500. Since camcorders start at about $250 to $300 you really won't be saving money.
http://reviews.cnet.com/Digital_cameras/4520-7603_7-5023995-6.html says this about video-clip recording --- Many digital cameras can capture video clips. While none of them will produce the quality of a dedicated video camera, some are substantially better than others. The best video-clip quality currently available from a digital still camera is 30fps VGA (640x480 resolution) with sound. Some cameras allow you to record a continuous clip up to the capacity of your memory card, while others shoot only 30 seconds or so at a time. And not all cameras that shoot video capture sound, so pay attention to the specs if you want your clips to be talkies. Only a handful of cameras can zoom while shooting video, so check the product information before buying if that capability is important to you.
CNET says "For the serious amateur (described as "I want to shoot stills and video clips for the Web, use creative effects when shooting and manipulating images, have professional-level control, output prints that are 8x10 inches or larger on a high-quality photo printer, and use accessories and different lenses".) they recommend the following specs:
Resolution 5 megapixels or greater
Price $500 and up
Lens type Supports lens converters or interchangeable lenses or zoom with widest focal range possible
Storage media High-capacity CompactFlash, Hitachi Microdrive, or Secure Digital/MultiMediaCard
Photo file format JPEG, TIFF (YCbCr or RGB), RAW
Interfaces USB 2.0 or FireWire
Exposure controls Automatic, aperture- and shutter-priority, manual, choice of metering modes, autobracketing
Focus controls Automatic with selectable focus points, manual
Flash modes Automatic, fill, slow sync, hot shoe or contact for external flash
Software Full-featured photo editor, software for PC-controlled capture
Multimedia Voice annotation
Cool features to look for Compatibility with existing 35mm-camera lenses and accessories, customizable user modes, dynamic histogram display, optical or mechanical image stabilization "
Cameras recommended for this are more expensive than the cheapest camcorders and include:
Canon EOS 400D Digital Rebel XTi Black
Canon EOS 350D Black + 18-55mm
Olympus E500 Black + 14-45 + 40-150mm Lens Kit
Nikon D80 Digital Camera (With 18 - 135mm Lens Kit)
Sony DSCR1 LCD Digital Camera
Like one of the responders to your earlier question, one online reviewer likes the Canon PowerShot A550 Digital Camera specifically because he was taking video with it. At 7.1 megapixels its resolution is just below your original choice of the Sony at 7.2 megapixels. It runs on AA batteries rather than rechargeables, hwoever, which to me is a false economy as the cost of the number of batteries you go through adds up in a hurry.
He says: "Video -- I have never been a fan of the digital video features that ship with virtually every digital still camera. I have always stated that if you wish to shoot video, buy a dedicated video camera that will enable you to do just that. All that advice went out the window when I witnessed the birth of my daughter. Going into the operating room, I had no intentions of bringing a traditional video camera with me to shoot her birth. Rather, I chose to shoot her birth with the PowerShot A550. The A550 captures 640x480 AVI video as well as 320x240 AVI video, which is ideal for uploading to sites such as YouTube. The A550 is unobtrusive enough that the hospital staff don't feel to bothered by it, as they might with a full blown video camera. And besides, I was the only one in the family to witness her birth. There was nothing to distract from her birth. There was no flip out LCD to deal with, and the minuscule size and zoom capabilities enabled me to get the close up right next to her for a closer look, even when they were wiping the baby muck off her skin. The hospital staff was even talking to the camera as I was shooting. "
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Lumix G VARIO 45-200mm/4.0-5.6 zoom lens w/MEGA Optical Image Stabilization covers the 35mm equivalent from 90-400mm to help the user capture crisp, blur-free, shots when shooting sports events, wildlife and other distant subjects