The 'Canon PowerShot S2 IS' is coming out in June and it's a bit more affordable than iGary's suggestion.

From what I've learned so far, this looks like it might be the best "all-around" use camera for me... good for point and shoot simplicity, but enough manual control to have some fun experimenting:
http://www.dpreview.com/news/0504/05042201canons2is.asp
I'm seriously considering getting one, but am going to wait for a couple of professional reviews first. It replaces the PowerShot S1, which is also a good camera - except for some complaints about slow autofocus, and a crappy lens cap. In the U.S., Sears is selling the S1 for $249 which is a steal... but I'm holding out for the S2.
A quick summary of it's main features:
- 5 megapixel
- 12x optical zoom (36mm - 432mm)
- Image stabilization
- Various shooting modes that include Shutter priority, Aperture priority and Manual mode
- 2.4fps continuous shooting (take 2.4 full resolution pictures per second)
- 640x480 video mode (can shoot very high quality video, and is only limited to the size of your SD memory card)