However, the tradeoff comes in its lack of bells and whistles. The VPC-FH1 omits several features that make those more-expensive cameras easier to use under many conditions, and pricier models also provide users with more image control. For some potential buyers, more-expensive camcorders such as the and the (both $1300) are worth their cost. For many others, the Xacti VPC-FH1 will be a stellar value.

The Sanyo camcorder uses a single 1/2.5-inch CMOS sensor to capture 1920-by-1080 video at 60 progressive frames per second (60p), 60 interlaced frames per second (60i), or 30 progressive frames per second (30p). The camera can also record 720/30p video and 8-megapixel stills.

The VPC-FH1 also includes a slow-motion option that supports recording at up to 600 fps (though at increasingly reduced resolution), employs face recognition to improve focus and exposure, has a 10X optical zoom lens, and records to SDHC cards.

Video is encoded as MPEG-4 AVC/H.264 with AAC audio. Although these are the same codecs used by AVCHD camcorders, Sanyo doesn't implement the . The VPC-FH1's MPEG-4 files play nicely in the bundled Nero 8 Essentials software, but some editing applications may require first converting the MPEG-4 files to another format.

In playback, the Xacti VPC-FH1's output performs quite well. In PC World Test Center jury evaluations, the VPC-FH1's video quality was just a shade below that of three $1000-and-up camcorders from Canon, Panasonic, and Sony. Video shot under typical interior lighting conditions earned a score of Good, falling short of the dynamic range and color accuracy found in footage from the best HD camcorders.