I still haven't seen one that even makes OK photos - best I've seen does 640 X 480 and they look awful (compared to even a 100 dollar still camera), unless it's a close-up shot.
We use a Canon Elura and it does have progressive scan still capability - not sure what the price is now since we bought it a while back, but at the time it was the best out there. Something better may have come along though by now
And if you do find a good one PLEASE let us know! LOL
I do know one guy runing a site and I'll ask him what they are using right now. It generally takes them a few days to answer email but if you don't hear something from me shoot me an email to remind me.