That's what marks this camera out for me. In highest quality mode I think the pictures are stunning. I've just returned from a two-week holiday in Thailand. I shot lots of stuff in the various wonderful locations, but still found that I'd used less than half of the 7 hours recording time available in XP mode, so I can't see myself ever using anything less than that standard. My main niggle is the position of the record button. Used in conventional palmcorder style, with hand through strap, the button doesn't quite fall under my thumb to switch off, so I end up doing a little jiggle at the end of a shot and that degrades the quality of a sequence shot and "edited" in camera. With regard to Mac editing, I found that iMovie recognised the camera straight away and uploaded stuff without any problem. Overall, I'm very happy with this camera (oh, and it was cheaper on Amazon than in Abu Dhabi or Bangkok duty frees).
I am really pleased with this camera, the image and sound quality are really impressive; it is easy to use and a good shape and weight to hold, but the problems come when loading on to the computer - the software provided is very limited in functionality and difficult to use. Windows Movie Maker is far better but unfortunately will not read the files from the camera - hence the lower star rating otherwise it is easily 5 star!
Looking at the features on this camcorder, the way it feels in your hand, the build quality and ease of use; there is no comparison, this is the best value single CCD HDD camcorder on the market today.
Very easy to use, but no Mac software. Main bad point is that to connect to computer you need to remove the battery as the USB connection is behind it. And yet to connect to PC you need power to turn it on - so you have to plug it in to the wall.