Smaller camcorders are increasing in popularity, and at the vanguard of that is the Flip Video camera, which is already a big seller in the USA.

In addition to shooting video it allows users to directly upload their clips to Youtube using the supplied software, and can store up to an hour of video.

At first glance, the Flip Video may seem like quite an expensive way of shooting the MPEG4 movies it creates, something that's also possible with most new mobile phones.

However, the quality of the recorded video from the Flip is much better than that from any mobile phone we've seen.

Its maximum resolution is a decent 640x480 pixels and we were pleasantly surprised by its good exposure levels and impressive low light performance.

The Flip Video outshines the Creative Vado in both of these respects. Sound, although only in mono rather than stereo, was also very clear.

Using the Flip was simple – there's a single button to start and stop recording and one for playing back videos. Recordings can be played back in full screen on the computer or on a television.

The AV cable needed for do this is supplied, along with a soft pouch – Creative doesn't supply either with the Vado. Given these, we think the Flip's higher price – £25 over the Vado – is justified.

The Flip is powered by two AA batteries as opposed to the Vado's lithium battery, but it doesn't come with rechargeable batteries or a charger.

We were disappointed that its screen is about an inch smaller than the Vado's, which means some may struggle to see details on it. It's also chunkier and heavier than the Vado, giving it a toy-like appearance compared with its sleeker rival.

The supplied software makes it easy to have fun with videos by automatically inserting effects and transitions based on a chosen theme. Unfortunately, though, it crashed several times during our testing, so it's not particularly stable.

Video quality was fairly impressive, although these smaller camcorders are never as good as their full-size rivals. The Flip is a well-designed video camera that performs well, then, but it's not perfect.