If you already have a Sony, you can use the Memory Sticks in the new one. Generally the video on compact digital cameras is very poor when compared to a proper video camera .. even inexpensive video cameras. It is just a feature used as a marketing tool to infer a value added kind of feeling .. you will notice that no DSLR cameras have this feature.
Here is a link that lists it specs ... http://www.dpreview.com/reviews/compare_post.asp?method=sidebyside&cameras=sony_dscw170&show=all
It has a good Li-ion battery and SI with a decent sized sensor and high pixel count .. the major reason for buying this camera is the 5x optical zoom.
If this is NOT your first digital camera, you may want to by a camera that uses the same memory cards you already own. (Memory Stick, SD or xD)