Sony today launched a AVCHD based Handycam TG1 that is less then 5” tall, 2.5” deep and weighs only 10 ounces but is still capable of recording video in HD resolution. Sony says that it is the smallest HD camcorder, even smaller then Sanyo’s Xacti line of camcorders. The TG1 records on Memory Stick Pro Duo cards and has a 2.7” touchscreen. The camcorder can take 4-megapixel photos and has a 10X optical zoom. Sony is using the BIONZ processor that is normally reserved for its higher end cameras. The camera has an automatic dynamic range compensation feature that reduces the likelihood of blown highlights or overly dark shadows. The TG1 ships with a 4GB high speed Memory Stick Pro Duo, so that the user gets enough memory to start recording immediately. The handycam TG1 will be available in May for $900.