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Canon

You won't go far wrong with one of these. I've had two Canon simple digital cameras, both have been great.

http://www.bestbuy.com/site/olspage.jsp?skuId=8266501&type=product&id=1170290185997

Something to look out for is whether they require normal batteries or come with a rechargeable one, and a charger. In my experience, the Canon rechargeables last for a very long time, and it's so much more cost effective than using normal batteries.
 
Depends what you need it for. If you are looking for a compact with a BIG zoom (like 10X) and a decent movie mode (to capture those moments when you forget your camcorder), then the Panasonic TZ4 or TZ5 are a great choice. The only down side is they aren't very good in low light conditions.
 
i just picked up a canon a720is for quite cheap (150 or so), and i think its great. we also have a sony w100 or similar that is good too

the bonus about the canon is that you can do a non-destructive (and reversible) hack on the firmware (just google canon firmware hack) and you can open your camera up to all sorts of advanced features that are heretofore unavailable on the middle-consumer-grade models, (but which the image processing chip on board is capable of doing)

very very cool.
 
Canon SD1000

If you're looking for a small pocketable camera, I highly recommend the Canon SD1000. I just picked one up a few months ago and couldn't be happier with it. The battery lasts forever, it takes great pictures and movies, and I can slip it into the front pocket of my jeans (which are not baggy, I'm a woman).

If you're looking for something with a bigger zoom, though, it's probably not right. But it's a great deal, about $150, maybe less.

I'd recommend getting a Canon, because of the firmware hack you can do to make it a much, much nicer camera - see this URL:

http://lifehacker.com/387380/turn-your-point+and+shoot-into-a-super+camera
 
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