Does the Canon 40 D Camera have a video mode ? If so , is the video quality as good as the...?

Point-and-shoot (P&S) cameras can do video as they don't have a real, moving shutter, but instead use an "electronic" shutter, which is done by "clearing" the sensor and then allowing it to absorb light for a specific amount of time (shutter speed), then disabling the charging circuits that respond to light. This can easily be done at fast rates, allowing the camera to take a series of fast photos that approximates video. Single-lens-reflex (SLR) cameras--including digital SLRs--actually have an honest-to-goodness, mechanical shutter, in addition to the swinging mirror that allows the photographer to actually see through the lens. These work just as a film camera does: when the shutter button is depressed, the mirror swings up, the shutter opens for a specific amount of time, the shutter closes, the mirror swings down, the shutter resets. This can only be done so fast (the fastest dSLRs fire at 10 frames per second), and cannot be used for video. (Note: some people have turned series of still photos taken at the fastest frame rate the camera can do into a "video", but due to the mechanical wear-and-tear taken on the shutter and mirror assembly, it's not recommended.) Now that I've said that, I'm going to offer a piece of advice: The Canon 40D is going to be way overkill for your needs. Save your money and buy a decent point-and-shoot, or spend all the money by buying that point-and-shoot and a real video camera. Buying a Canon 40D won't magically make your pictures better; I've had people shoot my Canon 1DMkII (professional camera) and make crappy photographs. If you're dead-set on buying a dSLR, get an entry-level consumer grade one, like the Canon XTi (or the XT if you can find one, will be around $500 or less), Nikon D40s (although it has lens limitations), or something similar. I recommend to people that are looking to buy a dSLR that if they're planning on spending an additional $1k+ on lens, then go ahead. If not, buy a good P&S.

No your good digital camera dont take videos. The best camera that does both is the Canon G9. The 40D is one of the best Digital SLR you can get, esp for the money. If you want a great Camera get it. You cant get a great camera that takes digital still images and videos as well. The technology is different, and thats why you cant get both that are great. the G9 is very good, but not as good as a really good DSLR like the 40D or 5D or the Mark 3. If the video is good on your current camera, then get the 40D and use it as a digital still frame liek its designed for and then you cna even take still images while you are taking video on your other camera. Hope this helps