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Hiya! This camera is supposed to but doesn't (the little hole on the front is supposed to be a microphone.), seems to be a common problem, everywhere I've asked has had this problem come up - the company I bought mine off has gone bust so can't get replacement/exchange >.< if you have bought yours recently you can get it exchanged for a better quality one (If bought in the last 6-9months ish.).
Hitachi support doesn't know about this camera either which is weird.
I would recommend a Sony Ericsson Cybershot phone - its better quality, has higher resolution (8.1 megapixel), easy to carry and doubles as a phone! Also it has antishake and face recognition which the Hitachi doesn't, it will cost a bit more but your basically getting a full phone coverage and camera for the price of just the camera. (I wish I took one of them to the last festival insted of this camera, virtually none of the photos come out in focus).
With the anti-shock on the C905 you could be in a Mini going down a cobbled street with kids jumping over you and you will still get a clean, focused picture.
Hope that answers your question and more!