I've been really happy with the Canon SD870IS. Had it for 4 months now, and find myself shooting more often, as it has a number of really interesting features, including:

-- wide angle lens (28mm equivalent), for capturing landscapes or bigger groups
-- macro capabilities that allow you to shoot within 2 inches the lens (great for food shots and interesting people shots)
-- 8 megapixel image resolution, so images can be printed at 8x10 with little issue
-- shirt-pocket-ability is high as well

I think it's a relative bargain ($248 at amazon), especially since it has the wide-angle lens. Good luck finding a camera!