It has been over a month since I bought a Flip for my wife as a birthday present. Wait! What is a "flip" you say? A "Flip" is a video capturing device that is as big as your Treo phone. Not only it is small, but it is also excellent in capturing video and very user friendly. The "flashing" light was me taking pictures with my digital camera.
My wife has been pretty happy with it and I tell you, it is probably one of the best bang for the buck investment I have done lately. The one that I bought is the "ultra" version. It has a higher quality video than the basic, uses 2 AA batteries, more color options, etc. You can see the complete comparison here.
Helen mostly uses it for shooting video about Jon so we can send them to my parents. It is very easy to use - Scott Hanselman says that it has a very high WAF (Wife Acceptance Factor). There are only 5 buttons: record, play, delete, next and previous - and they are self-explanatory. Sync-ing with a computer is a breeze and you can configure it to auto upload to YouTube if you want. You do need to install MPEG-4 coded to paly it back in your computer though - or you can just install the software that comes along with the Flip itself.
I paid $129 for mine @ Amazon - and it is probably cheaper now since the Mino is out.
Here is a sample - Jon dancing his Robot Dance:
The "flashing" light was me taking pictures with my digital camera.