Since most of us are photographers, you'll probably get more people saying buy a still camera. And the truth is, the video quality with current compact digital cameras is excellent. But only you know which is more important to you - video or still photos. I think the compromise is bigger with camcorders. They are still pretty limited as far as still image quality goes. But someone who's more interested in video might disagree or have different priorities.

For a real alternative, take a look at the Canon PowerShot TX1 hybrid camera. We just posted a detailed, expert review of it yesterday:

Canon PowerShot TX1 Pro Review >>

Maybe you can tell us a little more about your priorities so we can give you better advice. But the simple annswer to your question is - yes - you can get a camera for about $250 that will do good video and stills.