I use a Canon SD800IS. It's 7.1 megapixels, very compact, stores to readily available and cheap SD cards, and has Image Stabilization. It's my third Canon Elph, and I'm sold on these things. Not near the power and flexiblity of an SLR, but still very quick and capable. It takes great photos and has great color rendition. It also has outstanding battery life. Here's a link to a review:
http://www.imaging-resource.com/PROD...S/SD800ISA.HTM
That site has tons of info on most any camera out there.