Got three last time; one for me and the wife, one for each child for Christmas. Arrived last Wednesday or Thursday (can't remember), first use on Friday at my daughters Gymnastics competition.
Well, I added a 4GB SD card, and my observations are this:
1. Shaky. Granted, in order to get all the events, sometimes I had to hold my arm way up, which would have been bad enough without rotator problems in my shoulder. Some stabilization would be nice, I'll have to try to fix it with my video editing software.
2. Still image pictures look terrible. No better than a bad cell phone camera, but they tell you this up front (that's it's for video with single photo capability, but it's not meant to replace any decent camera).
3. The sound in the recordings actually came across nicely.
4. The camera has sound effects (on/off) that can't be turned off. Didn't matter at the event I was at, but at a wedding or something could be VERY annoying.
5. No optical zoom... digital zoom sucks, just don't bother zooming and you'll be fine.
Windows XP recognized the camera without installing any extra software and my wife was able to transfer everything... but it was slow as can be. Might actually only be using USB1.1 or something. My Linux install (latest Ubuntu) would not recognize the camera, but will read if you take the card out and use a card reader or put it in another camera.
Honestly, for $40, I think this was a pretty good deal... I mean, come on, it's got quite a lot of limitations, but 720p for $40? Given that it's just for having fun and not professionally recording weddings, and you don't mind if you break it, I think it's not a bad deal at all.
Ordered a couple of mini HDMI to HDMI cables so we can plug right into the TV, and SD cards, and I think it'll make a fine stocking stuffer for the kids, but they each have an inexpensive still camera that's worlds better than these for still images. Plug-and-play video for them, though, I think they will like it.