But if you buy digi cam with enough memory (say 1 GB, can record upto 45 min and more than 400 pics) I think it would serve as camcorder too.. [the only thing is that you cant change focus once you have started recording ..]
Peter, don't be misinformed here. The notions that digital cams cannot change focus, have relatively less resolution, cumbersome to handle as camcorders etc are just misconceptions. I was misinformed for a long time, until I decided to go for the Canon Powershot S1-IS. It comes with 10X optical zoom (which is really all you should be worried about, not the 32X digital zoom which you will probably use less than 5% of the time), Image Stabilization, an awesome rotating LCD display - great for movie shooting, and an amazing range of preset capture modes. The video mode is particularly impressive, and I've made some amazing movies using this - being able to fully use the digital cam features whilst shooting movies - zoom et al. For its price, I can safely say there are very few that would be able to beat its versatility, reliability and quality.
Some might argue that the 3MP might be less than adequate, but hey, unless you are planning to print blown-up posters, pictures shot at 3MP with optimal zoom are great for home viewing, preserving memories and showing off among friends! And this is coming from someone who pursues photography as a serious (and extremely financially-draining) hobby!