A good photograph is knowing where to stand.
Ansel Adams
A great camera won't make anyone a Great Photographer. But it won't hurt either. Canon's are good cameras. Nikon's are good cameras. There are a lot of good cameras.
For action shots you need a fast processor (cmos) and a fast card to record your shots. Panning will help take action shots and keep the background in focus.
This (s2IS) camera is a really good one. It has many features that one will have to 'learn' to use. It is more than just a basic point & shoot.
I think you would be happy with Canon or Nikon. We happen to be a Canon family. But Nikon is great also.
The out of focus background that someone referred to is called Bokeh, it is created by changing your depth of field and by using a larger f stop. And yes it is very desirable in photography.
Just my 2 cents worth.
Katz
Ps: And Kay has learned to use her camera very well !! But she does have perfect models ;) :D