Panasonic LX3 if you want top quality stills and excellent quality HD video (mono sound, no zoom in video). The zoom range is short (24-60mm), but the lens is nice and bright (F2 - f2.8), with full auto / manual / aperture Priority / Shutter Priority
Or Panasonic TZ7 - fantastic zoom range, with excellent HD video with stero sound and zoom / focus during video. No manual control, but excellent iA mode.
LX3 can be had for £300
TZ7 for around £250