I believe it will work with the microdrive as well as CF cards. It will be interesting to see how this one compares to the Sony CyberShot DSC-M1!
[Read review here]
The future of digital video is tapeless. For some, the future IS here. This unit records in MPEG2...which is basically DVD quality video. So if you have $1200 burning a hole in you pocket, then go to Amazon and order one :-)