firebox.com - SiPix Pocket DV Camcorder £49.99 (half price) 1.3MP, 1.6" TFT LCD, Digital Video recorder / camera. VGA resolution but only at 8fps (which is rather poor). But cheap never-the-less. (eg, this £50 1.3MP normal digital camera with do 640x480 up to 15fps with sound although it doesn't have a TFT screen in the back.)

Free Digital Camera Enhancer sounds / looks fairly impressive.