I'm saving my pennies for the Sony Handycam HDR-TG7VE but I think this would be a good alternative at a budget price.
Sony Mobile Snap MHS-CM5V Violet Camcorder
The Sony CM5 Bloggie is a fun and versatile mini-camcorder that is small enough to fit into any pocket or bag, yet packs the ability to film in full HD.
With simple point and shoot action, the CM5 Bloggie lets you film in 1080p/30fps Full HD, for beautifully detailed and colourful footage, as well as taking 5 megapixel stills. The CM5 also offers a 5x optical zoom to let you get great close up shots from far away.
The CM5 Bloggie comes with a range of features to make filming easier, including SteadyShot to eliminate camera wobble and face detection so it can adjust its settings to capture your loved ones at their absolute best.
The Sony CM5 Bloggie is incredibly easy to upload your footage as well, even when you're on the move - just connect the Bloggie to any PC or Mac using the built-in USB connector, and upload straight away, with no cables required.
What’s in the box
Rechargeable Battery Pack (NP-BK1)
A/V Connecting Cable
Charger (BC-CSK or CSKA)
Component A/V Cable
Application Software / USB Driver / (CD-ROM)
Also possible 3% quidco.