Sanyo claims its Xacti VPC-HD2 is the smallest high-def camcorder on the market. While I can't quite confirm the superlative, it certainly is a very small, light camcorder that can fit almost an hour of 720p footage into a single 4GB SD memory card. The VPC-HD2 shares the same slender, vaguely gun-shaped design as Sanyo's other Xacti camcorders. The 10x, 38mm- to 380mm-equivalent lens sits on the top of the camcorder, with the bulk of the device's controls right behind it. Below the lens, the camcorder's slim, rectangular body houses the battery, SD card slot, and flip-out 2.2-inch LCD screen, while offering a comfortable grip. The VPC-HD2 sat comfortably even in my large hand, though I still recommend using a wrist strap.
Despite its comfortable design, The VPC-HD2's control scheme suffers from a persistent, irritating flaw. Users can navigate the camcorder's menus and settings with a small, wiggly joystick just under the zoom switch. Besides tilting horizontally and vertically, the joystick presses straight down to act as a confirmation button. Unfortunately, the camcorder often mistakes the joystick's button functions and tilt functions, making menu navigation a frustrating exercise in precision.