What attracted me to this camare was the design and the dual use, but after 1 week of use I was very disappointed, the picture quality is mediocre and the video is good but only in outdoors and during the day, don't try to use it in low light conditions because both video and picture quality are disappointing; video shows a lot noise and be careful with the flash because there's no red-eye flash option, so be ready for a photoshop session trying to reduce all the red-eyes in your pictures. In day light pictures are good but really soft, I tried some outdoor pictures and I only was able to print 4 x 6 pictures with good quality, once again if you want more details in your shots you would have to spend some time with photoshop to make your photos look sharp. The reason because I chose this camera was because I need it something more portable than my DSLR, I liked the design and the waterproof was something extra; my previous camera was a Panasonic Lumix DMC-LZ3 and the quality was much better than the Xacti. I exchanged it for a Panasonic Lumix DMC-TZ5 and I'm very happy, the pictures are sharp and it also shots 720p video for only $20 more.
Stay with the xacti if you're looking something for your kids, is easy to use and fun or if you like hiking, fishing, etc and what you need is a camera that withstand the elements... but even in that case Olympus has better optionsGet more detail about Sanyo Xacti VPC-E2 Digital Camcorder and 8 MP Digital Camera (Blue).
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