If you are looking for a VERY compact camera then I would highly recommend the Sony Exilim. I have the 4 MPixel, but they are now making up to a 7 MPixel. ( I WANT one!!!)

It has a feature called "best shots" which has pre-configured settings for different lighting and shooting conditions, and you can also save personal settings.

It is small enough to keep in a pocket or handbag and the battery life is great.

ONE TIP - If you go for a SMALL camera - some manufacturers are cutting down on size so much that they leave out the viewfinder, so you ONLY have the LCD screen - this presents two problems:
- if you are travelling for a full day you want the option to be able to switch off the LCD and use the viewfinder to further prolong battery life
- in very bright sunlight you can't always see the LCD clearly, so you need the viewfinder.

Good luck in choosing!!