To maximize recording time, Sony records the audio and video to the disc with a pair of advanced compression algorithms. For video, the camera records in MPEG-2 (the same format used on DVD discs), and ATRAC (the algorithm used for MiniDisc audio units) is used to capture sound. Sony refers to this audio-video combination as the Video MD format.

In another departure from digital video standards, there's no IEEE 1394 (FireWire) interface to allow you to transfer your footage to your computer. Instead, the camera's AC adapter has a built-in Ethernet connection, which effectively lets your camera function as a computer on your network. To transfer images to and from the camera, you use a Web browser (both Internet Explorer and Netscape Navigator work). Stills are imported to your computer as JPEG files and movies appear in QuickTime format. In addition, traditional analog audio- and video-out plugs let you view your films on a TV or record them on a VCR.

With the DCM-M1, there's no need for video editing software or hardware--extensive video editing can be done within the camera itself. In edit mode, you can move, copy, trim, erase, divide, or group any video scenes. Because the DCM-M1 is based on a random-access (nonlinear) recording format, you can jump to scenes without rewinding or forwarding, and rearranging scenes is a snap.

The camera can also record stills--up to 4,500 images at 640 x 480 resolution fit on a single MD View Disc. It can also record up to 260 minutes of audio in the ATRAC format, as well as play recorded or prerecorded audio MiniDiscs.

Like most digital camcorders, the camera features both a traditional eyepiece viewfinder and a 3.5-inch swivel-mounted color LCD monitor. In an unusual twist, the LCD is touch-sensitive, serving as a simple and intuitive interface for video editing, and also allowing users to add hand-drawn annotations to films and stills.

The optics and special effects are similar to those of other Sony digital camcorders. One notable feature: to steady images, Sony has included optical image stabilization, which uses sensors to monitor camera motion and then minutely moves the optics to compensate. Unlike the less-expensive digital image stabilization found on many other camcorders, optical image stabilization does not degrade the quality of the recording. The lens features a 10x optical and 40x total zoom, numerous special effects (black-and-white and sepia, for example), plus many different types of fades and wipes. Power is provided by a Sony InfoLithium battery (included). Also included with the camcorder are a charger, AC cable, AV cable, and a blank MD View Disc.

This camera has so many unique features that it has no real competition. If you're looking for a camcorder that will give you extended recording time on a single tape, or if you're planning to edit your images extensively on a FireWire-equipped computer, then you're better off with a traditional Mini DV camcorder. If, on the other hand, you want a camcorder that allows extensive in-camera editing, and you plan to create brief (10 minutes or less) videos that you can easily share with your friends--or you just love really neat gadgets--this may be the perfect camcorder for you.

Pros:

• Images are recorded on random-access discs instead of linear tapes
• Touchscreen and built-in effects allow extensive in-camera editing
• Ethernet port provides a nearly universal method for transferring images

Cons:

• Each disc holds only 10 minutes of video at highest quality, and good luck finding a blank disc when you're on vacation
• No FireWire port or frame-by-frame image transfer