Shortly before Christmas, I started to look into a digital camera for use on the bike. This has been spurred on from some vlogs on Youtube and LiveVideo where most of the posters use the Kodak V570 for use in their helmet and shoot rolling video of the areas in which they live and ride. I was thinking along the same lines but my helmet probably won't allow me to have any camera inside with my big fat head already in there!....
What I have found in my search is a camera which shoots Mpeg 4 compression which allows video files in the order of 1 meg/min roughly. This is done at 640/480(VGA) and 30 fps. The camera is the Casio EX-V7. Media is SD and SDHC so you can use 4 gig cards if you feel the need. Also in aid of this camera, I have sourced out some aftermarket batteries which I now have two spares. A local retailer here on Vancouver Island was selling a single NP-50 (which is the necessary proprietary 3.7V Li-ion power source) for a price of $69.98.  A little steep for my liking, so I went to e-Bay and found from Hong Kong, I could get a suitable replacement although at a higher capacity of 1150 mah versus the supplied battery which only has 950 mah. I ordered two of these batteries and had them at my door for the grand sum total of $11.34. The 950 mah battery is listed as having enough power to shoot 100 mins of video in the camera and this will fill a 1 gig card (90 mins/gig). Nice balance of media and power.
I know this is long winded a bit, but I liked the camera so much, I went to the boxing day sale and got the same camera for Wendy for $170 and dutifully ordered more spare batteries from e-Bay for her too.
I'm now on my 5th digital camera with this purchase, so don't think I didn't do much research on it. It's a shirt pocket camera which I have made a mount for, to use on my bike during the upcoming seasons.
I think that for the money, you'll be hard pressed to find a 7 MP camera which shoots good stills, fine video with small file sizes, and oops, did I forget to mention it has a 7x optical zoom and a lens which has the transit inside the body? Yes there is no protruding lens to bump or worry about. It is also image stabilized and has dual mics for stereo sound and yes, you can even zoom in video mode with its silent zoom motor.  Enough sales pitch. Go look into it if I have piqued your interest...........

Definately interesting, me and my friends were thinking about using a remote camera that can be fixed inside our bike helmets, disadvantage is that the range is 50M, and someone is required to dash along with the recording equipment and stay in range. Seems like this is a good solution!

That's a good idea, didnt really think about that before.