The Canon S2-IS is a great camera for what it is.  I know it is a little old by now, I think they're up to S7-IS or something by now, but I would suggest this or anything in the S-IS series.  It is only 5 MegaPixel (which is what they're making some cell phone cameras by now)  but that is no big deal as long as you're not planning to blow any pictures up bigger than 8x10.  It is good for a family camera, a little bulky, so it's more for the amature photographer.  Not necessarily something you can pop into a purse and run, although I used to carry mine around that way. 

A few negatives about...