The HDR-AZ1 is Full HD. Most of the other video cameras that came out around the same time as this video camera also are Full HD.
It may also be worth considering one of the alternative Full HD video cameras currently available including cheaper camcorders such as the HDR-AS100VR (£249.99), or the HDR-AS200 (£229.99) both from Sony.
Camcorders which are Full HD that might be worth considering include the Sony HDR-PJ340 (£279.99).
What does "Full HD" mean?