We had a first encounter with it at PMA, but Simon Joinson from Digital Photography Review now has an exhaustive review on the Canon TX1, the camera with personality problems.
The video camera who wants to be a digital photo camera (or viceversa) is "technically, the cheapest HDTV camera in the market." But while its stills are "every bit as good as most other 7MP ultra-compacts" photo cameras, Simon says the TX1 has a few problems that may not make it the best option for everyone.
The quality of the stills is excellent compared to other videocameras, like the Sanyo's Xacti HD2 and Panasonic's SDR-150. His main objection is that the vertical format makes it weird to handle, specially "with the slightly awkward positioning of the controls." So even while it's extremely compact and it packs amazing functionality in a tiny package, he thinks the Canon TX1 is not an ideal photo camera. Still, they recommend to try it first at the shop.
Reading Simon's review, to me it looks like the Canon TX1 is a great option for people who want a small camcorder to take good HD videos and, at the same time, have the ability to take great quality still shots whenever you feel like it.
In any case, go and check their review. Like always, it's extremely complete and it has tons of sample photos that will let you see the quality of this camera for yourself.
Canon PowerShot TX1 Review [DPreview]