I’ve owned 3 generations of the Canon Powershot Digital Elph series and have loved ALL of them. Small, compact, durable, decent quality for such a small camera. I’ve traveled all over the world with my Elphs, they take a beating and still work great. Fits perfectly in any pocket without giving you an uncomfortable bulge. I currently own the SD1000 and it’s great. I went with the smaller LCD to get better battery life. I think you can find it for around $150-$175 currently, although there are probably better ones out there nowadays. Seems that every year they just get better and better.
The only issues I have are shared with EVERY point and shoot: red eye is bad, and sometimes it takes a few seconds for the flash to charge, making it difficult to snap fast pics at night. Digital zoom is pretty worthless.