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not really a good picture camera for under 500 that isn't point and shoot. if you want anything good you going to have to raise that budget a few hundred
well do you want something small and compact that can easily fit in a pocket or something bigger with better quality? i have a sony dcs-h55 and its really nice.. easily fits in a pocket and takes great pic.. i think its $330
Go with the gopro HD 1080p great quality fir video AND PICS! $35" max with mounts and stuff plus you will still have enough to buy a LCD screen for to view the pics!