The Canon DC40 DVD camcorder is a little bigger and quite a lot better, than the DC20. 

It's an impressive device in many ways, supporting in-camera video editing
and immediate playback of recordings from domestic DVD players.

If you wish, Canon's new camcorder can cut the PC out of the equation entirely.

Basic titling, video effects and chromakeying can all be achieved simply by using the camera's built-in menus.

For more advanced editing, simply load the recorded disc into your PC and run the supplied Roxio MyDVD software.

There's no need for video capture or slow Firewire data transfers.

While we were a little disappointed with the video quality of Canon's DC20; the DC40 attracts no such criticism.

The new model has a bigger CCD with twice the number of pixels that helps it create both video and still images with greater clarity and less noise than the cheaper model.

The leap from two to four megapixels is significant one - it may be slightly thicker and 70g heavier than the DC20, but if you're taking snaps you can now consider leaving your stills camera at home.

In stills mode, the DC40 captures images at up to 2,304 x 1,736 pixels - far from cutting edge but certainly adequate for holiday snaps.

You also benefit from the camera's 10x optical zoom lens.

Also new on the DC40 is a larger, 2.7in widescreen LCD screen, which is a definite improvement.

For a camera with so many built-in features, it's very easy to use despite being festooned with 19 buttons and sliders. If image quality is important to you, the DC40 is definitely worth the extra £150 over the DC20.

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Canon DC20 review
Cheaper version of the new DC40, but image quality suffers as a result of the lower specifications