Summary: I owned this Sony for a single day before I returned it to Amazon. First off, it records in MPEG2 format which is fairly compressed, and looks it once you upload to your computer. It is also not natively supported on the Mac without a 20$ additional Quicktime MPEG2 plugin. Which has to be converted before editing. Which makes it a slow, tedious affair. Also, the included software is, surprise, PC only.
Summary: There is one imporant detail with this camera, every time that there is a scene transition the image freezes for about half a second, as when your are watching a satellite image and the broadcasat gets momentarily interrupted. This will not be shown if you replay on the camera, but it will after you transfer your video to your PC or burn a DVD. This is mentioned in the manual as normal, I even contacted Sony customer support, and they told me the same thing.
Summary: I don't write many reviews for products I've purchased, but the Sony DCR-SR40 warrants some (more) bad publicity. The following words need to be plastered on the side of the box: Sony does not provide Mac-compatible software. The lack of Mac support is quite sad. For those unknowing, all HDD (hard disk drive) camcorders record their video on a hard drive in MPEG-2.
Summary: After testing this camcorder out for a couple weeks, I think I have finally decided to send it back. While it has some great features, there were some things I couldn't live with. Pros: Point and shoot without having to worry about getting a tape in the right place...gotta love it. Video during the daytime with decent light was simply amazing looking. Very compact and light weight. Easy to use on-screen menus. Cons: Very poor quality video in medium to low light.