You can get about 9 minutes out of 1gb on the Canon SD series running it at the 640x480@30fps setting.
Only thing keeping me from getting one up until now has been the relatively poor low-light ability of all the compact cameras; right now I'm trying to save up and get a Nikon D80 SLR maybe. Still need to go to a store and compare the D80 with the new Canon XTi and see which one has the better menu's and ease of use, although the weak 18-55 Canon lens is kind of putting me off of that choice, and most reviews are still putting the D80 on top as the best sub-$1000 SLR.