Panasonic, famous for its high quality digicams, comes back with Lumix DMC-FT1 waterproof, dustproof and shockproof point-and-shoot camera. This rugged camera shoots in 12.1mpx and records videos in full 1080p, at up to 6400 ISO with maximum shutter speed of 1/1300. 2.7-inch LCD, face recognition, image stabilization and creative modes. To be released in April 2009 for $400. [LetsGoDigital via Digital Camera Blog]
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for 400 you can get a super high quality full blown dedicated hd video camera that takes still images and comes with a big hard drive or sd card.