Mini-review:
accessory deal is over 🙁
However, Amazon has a Kodak NiMH charger with 4 batteries for $30.
The camera DOES take pretty decent pictures. There are some issues: the flash isn't too powerful, and without enough light, the exposures take too long (makes pictures blurry if hands shake). Colors are slightly pale-bluish in the flash - but you have to try hard to notice.
My old camera only took pictures at 640x480 (is that 0.3 MP? 🙂) so I am pleasantly surprised that I can take 1600x1200 pictures - optical zoom or not, you can do a lot to that with Photoshop.
The shipping firmware does not support 128MB SD cards. Furthermore, the firmware update requires a (64MB or less) SD card. So, I found a 16MB card on ebay for $7 + shipping, and a 256MB card. Still waiting on the second one. Kingston.com currently has 128/256MB SD cards for reasonable prices ($40/$65).
If you ask me, the 256MB card should be well worth it - when you do the firmware update, you discover a treasure trove of settings you can tweak, including exposure time, aperture size, and the ability to output RAW files. Obviously the RAW files are gigantic, but then you can do your own JPEG encoding (and "digital zooming") with Photoshop at the quality you want, not the quality that HP decides for you.
So, I could have paid $100 more for a better camera, but I'm happier keeping this camera and my $100 in the bank. My only regret is that I missed out on the accessory pack.