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On p. 100 in the manual it states that the zoom does not work when shooting a movie with the cd400 only.
The cd400 has quite a few more features,for example the higher resolution and the Carl Zeiss lens, compared to the cd250, thereby justifying the higher price. It has more functions as a still digital camera, more manual settings, etc., so I guess you have to sacrifice that one function. No digital still camera will replace a camcorder - the fact that you can record a movie as long as the cd allows is a lot better than most other still cameras. So you and your friend have the best of all worlds together, you just have to share!
I have taken thousands of pictures with my cd400, and the picture quality and the cheap storage are great. Happy shooting!
The movie mode function allows you to record short movie clips. The recorded movies can be played back or stored as still images using the cameras index function. Please note that the D-390 does not record sound in the movie mode.