Kind of a broad question. What type of camera are you looking for? For what kind of situations? Do you already have a bunch of memory cards in a certain format?
That being said, I am a big fan of Canon cameras, and the S3 looks like a nice model for something between a compact P&S and a full SLR. But if I were spending that much money, I might look at an SLR (Canon Rebel XT) since it is a system that will let you grow more.