Recommendations? Sub-$150 Digital Camera with video (W/DECENT COMPRESSION)

[M Bourgon]

Howdy. I currently have a Canon Powershot SD300. While on the whole I
like it, one thing that's annoying is that if I want to shoot video, a
2gb card will only last 15 minutes on their 640x480 video mode. I
know it's because of the video compression (m-jpeg) - are there any
relatively cheap cameras that have a good megapixel (4mp or better),
with an optical zoom (3x or better) and good video compression? If I
had my druthers, I'd ask for SD card compatibility, since I already
have several cards for it - but I'll have to buy more cards for
forthcoming trip, so I can cope. I also wouldn't mind higher
resolution than 640x480, but I know that moving up a notch or two
would decimate any space gains due to compression.

I haven't looked specifically at digital camcorders. I've got a nice
pocket-sized camera and am trying to keep with that theme.

THANKS IN ADVANCE.
M