Ask Engadget: Best budget camcorder that doubles as a digital camera?

It took us a little while to sort through the 250 or so questions we received over the last four hours, but we found a question for this week's Ask Engadget that resonated with us (actually, a lot of them resonated with us, and we'll probably use one of the other excellent questions submitted for next week's installment). Reader Benjamin W. wants to know:

What is the best video camera/digital camera combo on the market right now for the money? I am a college student,
so cash is tight, and I've got a little over $300 to spend. I am currently studying for a semester in Hong Kong, so I
can find just about anything, and I'd like something that takes decent still photos (2-3 megapixels) in addition to
video.

Any suggestions for the young man?