The newest digital format on the market, MicroMV records video and audio encoded as MPEG-2, which is the format used for DVD video. While this is a unique and intriguing feature, it's buttressed by the incredibly small size of the camera itself. While MicroMV might be the wave of the future, there are some unanswered questions in the present, but those concern the camcorder's interoperability with computers (most video-editing programs are made to work with the DV standard, not MPEG-2) rather than its shooting abilities.
All that said, your biggest question is probably, just how small is the DCR-IP7BT? It measures less than 2 inches wide, 4 inches high, and just over 3 inches deep. In other words, it's the smallest digital camcorder we've seen. Amazingly, Sony crammed a 10x optical zoom and 2.5-inch LCD onto this thing, which means they didn't sacrifice anything in their quest for smallness. Plus, they've included a digital still mode (and MPEG movie mode) that records onto Memory Stick. With the Bluetooth adapter, you can e-mail pictures and short movie clips right from the camcorder, but you need to be near a computer that is equipped with Bluetooth as well.
The DCR-IP7BT uses Super SteadyShot image stabilization to avoid the shakes normally associated with high zoom levels. Image stabilization will likely be your best friend when using the IP5, as its small size and weight lend themselves to the small camera movements likely to result in shaky footage. The camera comes with S-video, composite video, and IEEE 1394 ports.
