Thiis is a website describing 5 different alternatives. I haven't used any of them but I hope it gets you started.
I love the Sanyo Xacti CG20. In fact before the FLip was discontinued I chose the Xacti because of the zoom function and the overall form of it. Cheap too.
Thanks for sharing. It looks like you need to buy a card, correct? Do you know what format the video footage is? I want to make sure it is compatible with Movie Maker. Also, how is the battery life? Does it have special batteries?