Sanyo Xacti HD1

Sanyo's Xacti HD1 camcorder was designed to capture high-definition MPEG-4 video and 5.1-megapixel stills. It packs in a 10X optical zoom, image stabilization, and noise reduction—all in a lightweight package for less than $800. If the resulting video weren't laced with compression artifacts, we'd be head over heels.

The pistol grip design is ergonomical enough, although a more rugged build wouldn't hurt; a preponderance of plastic and the Xacti HD1's large lens could lead to serious damage if the little camera slips out of your pocket. The negligible weight (8.3 ounces with the battery and SD Card) necessitates use of the image stabilization feature. Even when you do use it, shooting requires a steady hand.

In a nod to approachability, the controls are quite stripped down. A normal/HD button instantly switches between HD and standard definition video. Large buttons on the rear trigger video or still shooting. The 2.2-inch display is bright and clear, and the 10X manual zoom lens responds quickly to the top-mounted slider. The external microphone jack is an unexpected bonus.

At the best quality setting, the Xacti HD1 shoots progressive 1280 x 720-pixel video. Even at the rate of 9 Mbps (a 6-Mbps setting is also available), encoding that signal to MPEG-4 scales the footage back from the clarity of true HD. Pause an image shot in bright sunlight and you'll see some artifacting and noticeable noise, especially on contrast lines where light and dark objects are next to one another.

With footage that has a fair amount of motion, the artifacts are more noticeable. The clean lines of a car were slightly jagged, and the overall image was simply not as clean and sharp as the HD tag would lead users to expect. The Xacti HD1 does have acceptable color fidelity, but on automatic settings, contrasts are too extreme, with shadows going quite dark. Engaging the manual exposure or shutter speed controls helped even out the exposure.

Low-light performance is worse. We found that dim environments are too much for the Xacti HD1. Even recording in a subdued coffee shop offered problems. Noise quickly overwhelms shadow areas. In the camera's defense, what details we could see when shooting in HD were relatively clear.

The Xacti HD1 packs 21 minutes of its video onto a 1GB SD Card. Standard-definition settings are also available to conserve storage space if necessary. Ironically, the SD settings (640 x 480-pixels, 30 fps, and 60 minutes/GB) frequently looked better than the HD, with lower levels of noise and artifacting.

The camera's stills proved slightly better. They lack the MPEG-4 artifacting, and even the optional 10-MP setting, which upscales images captured by the 5.2-MP CCD, produced good images. One selling point is the camera's ability to capture stills and video simultaneously, but doing so in our tests created a pause of several seconds in the video.

Despite the crucial omission of an SD Card, Sanyo does not skimp on accessories. Included are a remote, a case, a dock for charging and transferring data, composite A/V cables, and a useful set of component cables for connecting to HD displays. Unfortunately, connecting A/V cables without the dock requires the use of an easily lost two-inch square cable adapter.

At least a 2GB SD Card is necessary, adding about $75 to the price. Shooters may find their computers also need extra RAM to handle the large video clips. Keep in mind that older editing applications may balk at cutting HD, so a software upgrade could become another hidden cost. Sanyo's software bundle is reasonable, but the included Ulead Photo Explorer 8.5 Basic and Ulead DVD Movie Factory 4.0 SE aren't much use beyond basic editing and DVD creation. 

Though the tiny Xacti HD1 is a lot of fun to use, the price/performance ratio will satisfy only the most determined early adopter. Tempted gadget hounds might want to think twice and consider the camera's hidden costs (SD Card, extra RAM, and a more robust editing suite), which could easily add $500 to the price tag. The Xacti HD1's performance isn't good enough to justify its base price, much less an inflated final tally.