It records video and audio and would be fine to give to your young kids. If they break it your only out $20.
The package says HD video, but no matter what settings I changed mine would only record 640X480. It needs lots of light to get a halfway decent recording. Motion blur is bad too so the frame rate must not be to high.
I bought the cam for a 4yr old nephew. So it serves it's purpose, it was cheep I paid $19.99 for the camera and wont be heart broken if it gets thrashed.