I will be comparing the Sanyo Xacti E2 video quality to my current digital photo camera, a Canon S3 IS.

Let's see how this newly released Xacti waterproof hybrid camera (priced at around $400) compete with my Canon S3 IS (that I got a year ago for $300)

Pros
- Lightweight
- well built - does not feel cheap at all
- H.264 compression allow very small video size
- silent zooming
- Waterproof
- Can be use as a webcam
- will do 640x480 @ 60fps (perfect for slow motion)

Cons
- Terrible Image stabilization
- Focus is unreliable (therefore using manual focus is a must for macro shot)
- Even the Highest recording quality has a loss in detail
- My 1 year old Canon S3 IS performed better overall and cost me $100 less; on the other hand, S3 IS does produce enormous video file size :-)

Here is a Video Review of the E1, very similar to this model: freevlog.org/index.php/2007/07/10/testing-testing-sanyo-xacti-waterproof-e1-review/