Amazon is running a number of deals on the Flip Video cameras. We got one for Christmas, and couldn't be happier. It's like the iPod or iPhone of video cameras. It can easily fit into your pocket or purse and it takes high-definition video. Then to put the videos on your computer, you plug the device itself into the computer. It's very, very slick. Even my mom is using it (and she still doesn't know how to do copy and paste in Microsoft Word!).
I first heard about the Flip Camcorders from this NY Times piece, which explained how a start-up company created a great product that people will actually use.
Update: Frank Turk asks for some samples. Here are some good examples from David Pogue (who can be a bit cheesy) of the NYT and CNBC: