Yeah, I got the Panasonic TZ-5 a few months ago, nice camera for a point and shoot. One of the main deciding factors on that one was that it could shoot video in 720p. But yeah, I bought one of those 16Gb SDHC cards for it and it works great.
I paid $35 for the 4GB Sandisk UltraIII SDHC in my EOS 450D, from JB Hi Fi. If you ask the right people at JB, and ask nicely, they'll come down on their sticker price. Try ddphotographics and betterit as well. No link, JGFI.