I have a Canon PowerShot SD500 and love it because of its small size. I bought it last summer for about $400. The model is probably now obsolete, but in general I really like Canon digital cameras. I did try models from Sony, Pentax and Casio, but always went back to the Canon for best color.
I'm definitely no camera expert (still can't figure out a lot of features on my camera!) but just love digital cameras! And I really do prefer buying them at Costco (see that other thread on Fendi Spy at Costco!) as if there is a problem, you can return it and there is no crazy 30 day return/restock policy like some other stores!
i have an olympus e-300 which I bought when it first came out and that's what i used to take my choc paddy. it's a bit cheaper now.
i also have a canon Powershot SD550 7.1MP Digital Elph Camera that i have in my purse all the time. amazon.com has reviews on cameras by users. good luck looking for one!
I have the Canon Rebel XT and it's wonderful. The body is so much more lightweight than a traditional SLR. The auto setting is great, and is what I use most, but you can do all kinds of arty, low-light things with it too and it's wonderful. I especially like that I can focus on incredibly close things. I couldn't get with a foot of anything with my Sony Cybershot.
I have to take photos of houses all of the time as part of my job as a real estate agent, and this camera really delivers. It takes great snapshots of my soon-to-be four year old too!
That is a great camera. I have alot of friends who have it (having taken Photo-J) My next camera purchase will most likely be the Nikon D2X. But at the moment I shoot with a Nikon D1 which has been discontinued. Its a lovely first digital camera, as far as professional camera's go.