TX1 or S5 IS?

So far I have been using canon A70 (3.2 Mega pixels) for the last 3 years and I have found that I need to upgrade to a better camera. I am pretty happy with the canon reputation and quality and great pictures. However I no longer want to use my old JVC mini dvd camcorder.

I have been reading a number of reviews about TX1 and S5 IS. I was attracted towards TX1 over S5 IS due to high quality video, 7.1 Mega Pixels and 10x zoom. However ergonomics of TX1 does not seem to be better than S5 IS. In fact I was very surprised to find that the TX1 does not have good reviews as compared to S5 IS. I need reasonably good quality picture so I guess anything above 4 to 5 mega pixels should be fine for me. So in this regard TX1 seems to be equally good compared to S5 IS. However the maximum resolution video that one can take with S5 IS is 640x480.

Just wondering if anyone has experienced with both of these cameras and could make some recommendation. Any other brand of cameras that you can recommend over S5 IS and TX1.

I have no personal experience with either camera. Here are two in depth reviews for your reading pleasure.

http://www.dpreview.com/reviews/canons5is/
http://www.dpreview.com/reviews/canontx1/

My opinion would be something along the lines of, "If you plan on doing a lot of video and a few stills AND you try the TX1 out in the store and like the feel and function of it in your hands, then buy the TX1". My prediction is that you will NOT like the feel and function in your hands because the ergonomics are terrible. In that case, do the same test with the S5is and similarly, buy it only if it feels and works well in YOUR hands.
Buying a P&S digital still camera for the video it takes is still the wrong policy since the "hybrids" just still haven't gotten to the stage we need for the price we want to pay.

It is unfortunate that most reviewers gave poor marks for the TX-1 handling, which Larry is repeating above. It takes some time to get used to holding it, but if you don't have oversized hands then you can learn to use it comfortably (although it never will be fantastic).

Personally I love my TX1 because of it's portability. I carry mine *everywhere* with me (without a case), I take photos with it every day, and I shoot short video clips a few times a week. I decided against the S3 because I figured I just wouldn't use it much, and certainly wouldn't get those serindipidous moments when I see something awesome, and I am ready to take a shot.

The TX-1 needs good light or the flash (most any camera the same size or smaller has poor low light capabilities).

Basically if you want a small camera that can also take occasional HD 780p video, it is brilliant. That said, you can find better small cameras with 640x480 stereo (and to be honest 640x480 video is great even full size on a monitor -- if the camera is good).

If you like to fiddle with your photography, then I can recommend looking at any of the Canon point&shoots that are supported by CHDK. This is upgrade software written by enthusiasts that gives Canon cameras professional/enthusiast/technical capabilities far beyond what you get normally with consumer cameras. Have a look at http://chdk.wikia.com/ - or see the links in http://chdk.wikia.com/wiki/Special:Search?search=samples&go=1 for what people are doing with CHDK.

Virtually all of the negative issues with the TX1 are due to the compromises with having a small camera. If you can't live with the compromises then you probably suit a larger camera. The compromises are: needs good lighting, gets red eye (flash too close to lens), finicky to handle, LCD is small, no extensibility (no lens, no external mic connector, no flash shoe etc).

It does have a keen following of users that love their camera -- forum is http://forums.powershot-tx1.com/ or ask another question if you need more details.