The main reasons I purchased this camera were its size and its resolution. The camera is small enough to fit in my coat pocket, which means that I have it with me when I need it, and its 3MP resolution means that I can leave my digital camera at home. In fact, this camera has an F1.8 lens, which is as fast as you'll find on most full-size cameras, so it takes decent pictures indoors even without using the flash.
While I've been delighted with the size and still camera capabilities, there are a few other features that I think are great as well. The first is the option to use 16:9 video format if you want. I have a HDTV, and video shot in normal 4:3 format doesn't fill the screen unless it's stretched sideways, making everyone look fat. The 16:9 option of the DCR-PC350 allows you to shoot video that fills the screen like a real movie. You'll probably appreciate this even more in a few years when most TVs are widescreen.
A second useful, though not well documented, feature is the "seek to end" feature. If you've been reviewing what you've recorded and want to start recording again without overwriting something, you can use the "seek to end" to move quickly to the end of the recorded section.
Another reviewer complained about the inability to monitor sound levels during recording. This hasn't been a problem for me as I found I could just plug a set of headphones into the AV jack and hear what was being recorded. In fact, both the AV port and the s-video port are active when the camera's on, so you can watch and hear what you're recording using an external monitor and headphones (or speaker) if you want.
The camera has tons of other fancy features, all of which are accessible through the handy touch-screen display, but those above are my favorites.
The main complaints I have about this camera are:
1) The memory stick. The camera ships with a memory stick that's got a measly 16MB capacity, so plan on replacing it with a 256MB or 512MB stick straight away. In addition, the memory stick is this odd "memory stick duo" format that you have to insert into a larger adapter (supplied) to make it readable by a computer. Using a standard SD card, which is the same size as the duo anyway, would have been a better idea.
2) The software. The bundled video editing software is terrible. Plan on buying Adobe Premiere, or using Windows Movie Maker.
3) The cabling. You definitely want to use firewire rather than USB 2.0 for doing your video transfers if for no other reason than it provides almost 2x the transfer speed. In addition, some video editing software looks for cameras only on a firewire port. So plan on buying a firewire cable as well.
The need to immediately drop another hundred or two on accessories is the main reason I gave this camera 4 stars instead of 5.
Lastly, I'd also recommend getting the "BCTRF Compact Battery Charger for F Series Batteries" and the "Sony HVLS3D 3 Watt Video Light" The charger is only slightly bigger than the battery and saves you lugging the AC adapter around on vacation. The light is tiny and despite being only 3 watts can make a significant difference indoors if you're close to your subject.
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