I'd like to thank juliet_bravo for pointing this one out to me, as I was rabbiting on about these yesterday.
Play.com have the "Flip", which has only just been released in the UK in the last few days. The Flip has been really popular in the USA, with over 1 million sales there in its first year, taking a 13% share of the USA digital camcorder market in 12 months. And it's easy to see why Flip has been so successful... It's SIMPLE. There's one button to record, the camera does everything else (like focusing) automatically. There's enough room for 60 mins of video. Once you've finished recording, you can uploading it to your computer without messing about with cables, discs and drivers. The USB "plug" is a part of the device is contained within the player itself, and when you connect it up the software is automatically loaded as it is stored on the player itself and the software encodes the video into a format which is suitable for editing on your PC/Mac. The software allows you to edit the video, add music and upload it to YouTube, Myspace, etc or email it to someone, all from within the program.
Take a look at this video demonstration on Firebox: http://www.firebox.com/video/1619
Play.com are selling this for £99.99. The lowest price in the UK at the moment is £99.95. Play.com offer £5 off when you use the discount code "CREST081", bringing the price down the £94.99. There's 4% QuidCo, allowing for £3.80 in cashback. You can also choose an accessory when you buy your Flip, and you'll get 50% off that accessory. Delivery from Play.com is free.