I'm using an LG Viewty Smart for this video, rather than the Samsung G600 I have used for my other videos.
This one seems to track movement much better than the Samsung... however it seems even more sensitive to lighting conditions. The image is very dark and noisy.
I'll have to try recording in daylight to see if it eliminates the noise.

Anyway, I think this camera is better than the Samsung for this kind of video. The colours may be poor and it may be noisy, but you can see the actual guitar playing much better, because the hands don't turn into a blur all the time.

By the way, the backing track was made by Benwave for Guitarjammers' monthly compo, December 2009 edition. (less info)