The AVCHD format has been taking over the high–definition camcorder market – despite the older tape–based HDV being capable of better image quality. But now Canon has launched a camcorder that could put up a real challenge.

Like Panasonic’s HDC–SD9, the Canon HF10 offers the highest AVCHD data rate currently available: 17Mb/sec. This is still lower than HDV, but MPEG4 AVC H.264 is more efficient than MPEG2. The HF10 also offers Full HD recording at 1920 x 1080, and there’s a 25p progressive recording option, too.

The unique thing about the HF10 is its “dual flash” system. As well as having an SDHC slot, it also has 16GB of flash built in, which is enough for more than two hours of footage in the top FXP mode. There is also a cheaper HF100 version which has identical features to the HF10, minus the on–board memory.

For the HF10, Canon has moved to a smaller sensor. It’s 1/3.2in big, with 3.3 megapixels, although the full resolution is used only for 2048 x 1536 still images. The HF10 has plenty of features for the enthusiast: the aperture priority mode allows the iris to be set from F1.8 to F8, or you can vary the shutter speed from 1/2 to 1/2000th; the Exposure control can be used on top of either priority mode; and there’s also a Cinema setting.

Now that AVCHD is more widely supported by editing software, image quality was its only remaining downside – and Canon has finally amended this with the HF10. Despite having a smaller sensor than the excellent HDV–based HV20, the HF10 equals or outperforms it in all conditions. Colour fidelity is excellent, but best of all is the general sharpness of the image, which is better than that of any consumer HDV camcorder we’ve seen.

It’s not all perfect. Despite offering mini–jacks for headphones and an external microphone, the HF10 doesn’t have a standard accessory shoe; instead, to save space, Canon has moved to a smaller proprietary one. But apart from this, Canon has managed to create one of the first truly great AVCHD camcorders. It might not be quite small enough for stowing in a pocket, but it’s still supremely portable. This is a hugely powerful camcorder in a remarkably tiny package – and it’s great value, too.