My recommendations are as follows:
1. HP R707 (I work for HP, and it has clever technology to help you take better pictures, like in-built re-eye reduction).
2. Canon G6
3. Canon EOD300D (I have one and it is awesome) or Nikon D70.
The best site on the web I have found to research this further is
www.dpreview.com. Pick a few you like, and then head to a shop and try them out. It's as much about look and feel as it is about specs etc. Good luck.[/QUOTE]
Totally agree with the comments above. I too have a Canon EOD 300D also know as a Digital Rebel. Fantastic camera. Plus you can use any of Canon's EOD lenses with it.
One additional comment. Sometimes it is tempting to get a very small camera that will fit in your shirt pocket. My experience with small cameras is that it is very hard to hold them still enough to make sure you photos are not blurry. This is especially true in low light situations. It has to be pretty dark before I need a tripod with the Canon 300D. A little heft helps you to steady the camera.