I have just set up one for a friend who bought it for her daughter.
Very small, neat
Works pretty well as a webcam
Good bundled software
Useless in low light (anything indoors when you would normally have the lights on) - simply refuses to take a picture
Very small, grainy stills
A little fiddly to understand the brief instructions and setup.
Overall, they were very pleased with it, but disappointed that it would not take pictures at all in lowish light levels. I pointed out that this was common to many of these ultra-cheap digital devices.