I have the Elura 2. Don't get the MC model, the still image resolution is 640x480, thus worthless in my opinion. This is the smallest digital camcorder in the world. The form factor is fantastic, its smaller than my digital camera (Kodak 4800). Pictures are brilliantly clear. Minor gripes I have are: Battery life is too short (will need spare battery), Its not the best low light camera, and during windy outdoor shots you may get some microphone noise.
Canon is releasing Elura 10 and Elura 20 this month. Thats why this model is discounted, and it will probably be discontinued soon. At these prices, its the best DV camera deal, in my opinion.