My Sony Cybershot DSC-T9 takes VGA resolution videos.
However, as I mentioned (and you saw!) in a recent post regarding my 30th anniversary reunion, its low light performance is pretty crap.
Well, I just read about The Flip, an inexpensive, video-only camera. For as little as $US120, you get VGA resolution, with good low light attributes at a constant 30 frames per second.
It includes a built-in male USB connector, and on-board software for both Windows and OS X, that not only allows you to retrieve the content, but also to do some level of editing and even upload content to YouTube.
Check out some of the videos on their site to see how impressive this little camera is.
For details, check out the specifications.