Lately, I've been doing extensive research for picking up a HD camcorder. Initially, I was only concerned about the video quality and not about the still performance (because I have a trustly old Panny FZ5) but after my recent trip to NY, I realized that carrying two cameras not only gets cumbersome but sometimes impossible (like when you are on boat) and thats why I've decided to look into camcorder/camera combo. I know that every HD camcorder take stills but majority of them cannot even compare with point & shoot dedicated cameras.

In my initial research, Panasonic GH1 seems to be a very interesting but its kinda out of my budget. What other camcoder/camera should I take a look at (max budget around $1100) ?

It records video at up to 1920 x 1080p @ 60fps and excellent stills at 8 megapixels or 12 megapixels interpolated. On the downside, it does not have optical stabilization; just digital stabilization. I found that a monopod is helpful to reduce jitter. I also notice more than a little purple fringing in high-contrast areas. However, the device does an excellent job of both stills and videos.

Here is a sample which includes stills and motion video.

http://www.vimeo.com/5534010

It records video at up to 1920 x 1080p @ 60fps and excellent stills at 8 megapixels or 12 megapixels interpolated. On the downside, it does not have optical stabilization; just digital stabilization. I found that a monopod is helpful to reduce jitter. However, the device does an excellent job of both stills and videos.

Here is a sample which includes stills and motion video.

http://www.vimeo.com/5534010

I bought FH1 recently and even though it does take great pics and video, lack of stabilization kills it for me. Also, I've found that sometimes it does weird things. For example, I took a lot of videos and pics at Time Square couple of days ago and even though they looked great on the cam LCD but when I watched them on my laptop (back the hotel), all the pics and videos were dark.

Next day, I tried using "Cloudy" and "Sunny" WB and was able to achieve to better results but the weird thing was that even though it was a couldy day (almost looked like evening) but I had to select "Sunny" in order to match the results with what I was seeing with my eyes otherwise, if I selected "Cloudy", I still got dark images.

It seems like either the AWB does not work or the LCD does not correctly shows what the end result would be like.

I use my SR11 primarily for video but it has also replaced all my still needs. I suggest that you check its sensor specs (or one of the Sony updated models - eg CX12). It claims to be 10 megapixels but I think that's a marketing claim. I have been satisfied with the OIS on the stills, even when on the electronic zoom.

I bought FH1 recently and even though it does take great pics and video, lack of stabilization kills it for me. Also, I've found that sometimes it does weird things. For example, I took a lot of videos and pics at Time Square couple of days ago and even though they looked great on the cam LCD but when I watched them on my laptop (back the hotel), all the pics and videos were dark.

Next day, I tried using "Cloudy" and "Sunny" WB and was able to achieve to better results but the weird thing was that even though it was a couldy day (almost looked like evening) but I had to select "Sunny" in order to match the results with what I was seeing with my eyes otherwise, if I selected "Cloudy", I still got dark images.

It seems like either the AWB does not work or the LCD does not correctly shows what the end result would be like.

I use a setting on my FH1 where I set the ISO (shortcut key for me) to 200 and sometimes 400, put it in "S" mode at 1/60 (I shoot in 60p) and use the appropriate white balance for incandescent or fluorescent lighting for indoor shooting or AWB for low light outdoor shots. I am pretty happy with those results. Worth trying.
Also, you can try f-ing around with the brightness (another shortcut key for me) though I have had mixed results there. I posted on here a while back hoping others would post up some user settings that worked for them but did not get much on replies. Let us know if you find something to improve your footage.