I've got a Flip Video and it works great. Point. Shoot. Great quality. Just don't bother with the zoom since it's a "digital zoom" which means as you zoom in, the picture doesn't really zoom so much as just crop out the edges.
Aside from the zoom I love it. Works great in all light, indoor or out. Fits in a pocket.
It also uploads to Youtube real well, with better quality video then most. The only examples that I have publicly on-line right now are from my recent 5th Kyu Aikodo test. Not great Aikido -- yet, but the video quality is pretty good -- especially for the money.
(PS - forgive the camera work, one of my daughters was taking the video)