I have finally found the solution to my camera dilemma, the Canon EOS 500D.
For a while now I have been looking for something to record video, I was reluctant to go for a traditional camcorder as they are quite big, expensive and only do one thing. I had almost settled on one of the handheld video recording devices such as the Kodak Zi6, they can normally record HD video, there relatively cheap and portable.
The only thing putting me off was the overall quality, yes they can record HD video but the optics are cheap and you can see this in the videos they capture.
Ideally I would like the Canon EOS 5D digital SLR with HD video recording function I wrote about last year but that camera is over £2000 so it's not going to happen. Today I came across the 500D and the fact it records HD video as well, I had no idea that any of Canon's other cameras in this range recorded video.
The 500D is expensive but it is much more affordable than the 5D, for example Amazon currently have it for just under £600.
The real benefit of a video camera like this over the Kodak or a traditional video camera are the lenses. You can easily switch between different lenses for example a zoom or a wide angle, the zoom is also manual for greater accuracy.
I am fairly set on this camera now, my current SLR is the 300D and is now getting on a bit so this camera while still a little pricy is a good upgrade.