Sony Cybershot DSC-G1

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Sony's 6 megapixel Cybershot G1 is their first digital camera to include a wireless feature that lets you wirelessly share photos with other compatible cameras and also wirelessly send them to your computer. The camera also sports a large 3.5 inch LCD, super steady shot image stabilization, and our favorite feature, 2GB of internal memory for photo storage out of the box. [$600]