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Yeah, most of the digital video cameras I've used take terrible pictures ... I've seen some digital cameras take half decent videos, but they're very limited in terms of memory, so you can only record so much.
As mentioned earlier, Canon is a good choice. My parents have an Elph series camera (SD200, IIRC) that takes great pics. Nice and compact, too.
How much zoom do you need, exactly ? Most digital cameras only feature 3x or 4x zoom, which is good enough for a lot of people, but not enough for some people.
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