This is a fantastic deal and a great camera. The best feature is the HD (720p) video mode, with stereo sound and 5x optical zoom which works whilst filming (very rare on a digital camera this size). I have a full HD Canon camcorder and the quality of this small camera has to be seen to be believed! Photo quality is good too - the lens is sharp and the touch screen is great for choosing a focus point if you choose and for reviewing photos. Battery life is its weakest point - but then the huge screen and image stabilisation don't help! I bought a spare NP FD-1 battery which is nice because it also shows minutes remaining.
Can get it for £159 if you don't want memory stick or case but for £5 has to be worth it! Personally I got a Always On Wrap case and an 8GB MkII Sony memory stick :).
From the WHE website:
The Sony Cyber-shot DSC-T500 is a slim and stylish ultra-compact digital camera featuring a metal body, sliding front plate and folded optics. Highlights of the T500 include a 10 megapixel sensor, 33-165mm equivalent 5x zoom lens, large 3.5-inch touch-sensitive rear screen, Super SteadyShot optical image stabilisation, face and smile detection technology, ISO 3200 and intelligent scene recognition. The Sony T500 also boasts 1280x720 pixel 720p HD movie recording with stereo sound and HDMI output.