For it's price, I wasn't really expecting too much from this camcorder. I'd read reviews on other sites complaining about picture quality due to the compression. However, it seems perfectly fine to me, and is comparable to my Sony mini DV cam. Even at full 37x optical zoom the picture is pretty decent (but even with the image stabilization you will need a VERY stead hand or a tripod for a steady picture at full zoom).
It's a nice size, fits in the palm of the hand nicely, but isn't too small. It's well made and feels pretty solid in the hand.
The added bonus for me was the infra-red remote, which I wouldn't expect on a camera at this price. It's very useful if you use a tripod as you don't get any of that shake like you would after pressing the record button on the camera.
Get a good 2-2.5 hours recording time from the battery. And the 8GB Play SDHC memory card (£14.99) gets nearly 2 hours of video at the highest quality setting.
Quality in dark situations isn't great, but it's good enough.
My one and only gripe is the fact that to transfer files via the USB cable you need the mains adapter plugged in. So if you take the camera anywhere and you want to transfer the files (e.g. at a freinds house) you have to take the mains adapter with you.
A better option would be to get a SDHC compatible USB card reader, which can be picked up pretty cheap if you know where to look.
I can't comment on the still picture quality as that's not why I bought it, so haven't tried it. I have a nice still camera for that.
As well as a built in mic, it has a seperate mic input (standard 3.5m jack), which is a useful feature for some.
All in all I'm very happy with the camera (and Play's price, which seems to be the cheapest around), and only took 2 days to arrive after ordering (although the memory card came a day later).