I have a Canon
Powershot S110, and I love it.
<edit>
DP Review's... uh... review.
</edit>
It's compact, takes great pictures, and has some nice features. Compact Flash memory is fairly inexpensive (128MB for $40, if I recall correctly), so you don't have to worry about proprietary memory formats, as there're many manufacturers, and CF readers (PCMCIA and USB) are rather cheap.
/me shrugs. Just another data point.