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The Flip isn't about producing high quality video, it's, to quote David Pogue from his recent review, a device "so simple, mastery is immediate, and so is your sense of pride and happiness."
 
The flip camera is fun, fits in your pocket, push one button and you go.
No fuss , no muss. No point to try to compare it with more expensive cameras.
The thing you need to know is that it output to AVI and you'll have to convert it to DV before you can edit in FC. Also , on a mac, you may want to download the Xvi component for QT or you may not be able to view your video with quick time. The quality is what you would expect of a $150 camera.

Eric
 
Is the ultra any better?

I have about $300 to spend. What are my options with a macbook purchased from Apple last year?
 
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