I'm def gonna agree to stick with the Canon family all three of my cameras (mi dv cam, 35 mm, & my digital) are all Canon and all excellent.
I have the PowerShot A540 w/ 6 mega pixels but, there are a few newer in the same PowerShot line that are similar and more compact. The more compact obviously the more $$$. Picture quality/clarity is great! On the negative one might have to invest in a Li-ion charger + Battery combo.