Hi!
I agree the camera recommendations above, but disagree the battery issue. In my opinion a camera with rechargeable battery is better way to go. Personally I use Canon S70, carry two batteries and the tiny recharger. The capacity of batteries is way better than set of AAs and it takes only less than hour to recharge the battery. I agree that AAs are widely available, but you can plug in the charger just everywhere. While you're having a cup of coffee you can recharge the battery for another 100 photos. And with two full batteries you can take a whole lot of photos.

I used to prefer "AA-cameras" with same reasons, but few years back in Sinai desert, Egypt, I bought four packages of AAs and found them all empty. It's usually not a problen in West, but you never know when out there. I missed some spectacular views with tens of empty AAs in my bags..

Rechargeable batteries are reliable, cheap and ecological choice, I think.

I just had a look at my olympus charger and surprisingly it weighs less than 4 AA batteries. I have cut the power cord down to about 2 inches long which is a nice travel friendly mod.
I generally find AA batteries dissapear into the depths of my bags and I dont see them again untill I get home and unpack. Or worse I mix up the old and the new ones!

A few things to consider--- after owning several canons- the dreaded e18 error. Google it before buying.

Secondly, most of their small cameras only really work well at low ISO settings.

Agreed, but instead of dedicated device batteries I use rechargeable AA/AAA batteries. With the exception of cell phone and bike comp, all my electrical touring gizmos (lights, camera, radio, GPS) take AAs or AAAs. I need just one charger instead of 3-4, and the charger can be powered by mains or 12V. In a pinch I can also swap batteries between devices.

--J