I am NO EXPERT, but here is my opinion.

I have a Fuji FinePix 6800Z which I am very happy with. The quality is excellent, and it can be hooked up to the PC using only a USB cable, which is convenient when I want to use it at work. It also comes with a cradle for charging (can be charged without) and the cradle also allows it to be used as a webcam.

I am very happy with this camera, it is small enough to carry in a fanny-pack or handbag, but large enough to have a nice solid feel to it, and also has a zoom and a very large digital display. It also records video (although I have never used this option). My husband finds the buttons a bit small, so I usually tell people to "try them on" - make sure it fits your hand comfortably, and you can press all the buttons easily.

There is a site called epinions.com which is a great source of information for products reviews. I also check out Amazon.com - I much prefer reviews which have been written by REAL USERS and not just a bunch of Journos reviewing a new product which they
havent had to pay for!

Good luck finding the right camera - it's one of the best presents my hubby ever gave me - the first time I asked him for a camera he bought me a really complicated SLR with loads of lenses and stuff - I have NEVER managed to use it