not sure if this is the right section for this , but im looking for something around the £250 mark , or less if possible , i havnt a clue about these things ..
Or of course you could use the newer high-spec phones - iPhone 4 or some of the HTC's with the upcoming Android 2.2 update can do 720p recording. Couldn't get much more compact and potentially cheap if you needed a new phone... Though quality not as good as a dedicated cam the iPhone 4 is surprisingly decent.