Canon IS S3. I have the S2 (previous version) and theres not alot different between the S2 and S3 part from the S3 is slightly better. 5mp (6mp for the S3) and 12x optical zoom makes a fantastic camera, great in all light and only £240

The only problem is its not very compact, but the whole camera is much much better than a compact camera so you can understand why ts a bit bigger.

Some random pics i have taken with my S2 :















plus takes great video too (that was low res to save space on the memory card) :