My problem with most camcorders is they're too big to fit in a pocket so I never have them with me. In the category of pocketable, I have a few favorites! Two are digital cameras, the other more of a camcorder, but all do high def video as well as regular pictures!
Panasonic Lumix DMC-ZS3
This is a great little camera that takes High Def movies, has a super wide 25mm angle lens and an impressive 12x optical zoom. It takes HD movies and the OPTICAL ZOOM works in movie mode - something that's kind of rare in small digital cameras.
Pentax Optio W80
This is a fun camera I just picked up after I soaked my old Panasonic DMC-FX01 and destroyed it... It's waterproof, shock resistant, can take time lapse movies as well as HIGH DEF MOVIES! The only bad thing about it is, it zooms digitally so you can zoom, but it gets all grainy. Check out the video below:
Canon Powershot TX1
The Canon Powershot TX1 camera is tiny, takes high def movies, has a 10x OPTICAL zoom (GOOD). Battery life could be a lot better. With a 16 GB SDHC Memory Card, you can get 56 minutes of HD video or 124 minutes of standard definition video.