The key word for the HDR-SR1 is "new." Sony uses a new HD format, called AVCHD, to compress and store the video. This lets you burn the HD video onto standard DVD discs and play them in an AVCHD-compatible player, rather than having to choose between the dueling Blu-ray and HD-DVD burners. One caveat: because AVCHD is so new, choices of software for editing and playing the resulting .m2ts files are extremely limited right now. The camera comes with software for basic editing and viewing on a PC.

The HDR-SR1 also uses a new sensor technology, CMOS, instead of the traditional CCD. Sony claims its CMOS sensor technology is better than the older CCD for a variety of reasons, such as lower power consumption, which means longer battery life.

But wait, there's more! This cool camcorder includes Dolby 5.1 channel audio recording, a 3.5-in.-wide LCD display with touch-panel controls, a Carl Zeiss Vario-Sonnar Lens, 4.0-megapixel still image recording to Memory Stick Duo media and image stabilization, among other features. Connection choices to a PC or TV include HDMI, USB 2.0, component and composite.

The sleek black-and-chrome design feels good in your hands, and the controls are easy to learn and use. You have the option of operating many of the controls from the LCD touch panel or from the hardware.

Available for about $1,200 to $1,500, this unit is sure to elicit many "oohs" and "aahs" when it's unwrapped at holiday time.