I do love this camera except for last weekend when although it gets shots in low light I had to blindly position my camera as I could not see the subject on the screen. Also had "red-eye" results even though the red-eye reduction was activated. Otherwise this was a wonderful Xmas gift and I use it regularly.
Sony - Cybershot 7.2MP Digital Camera is recommended by janm
The ultra-compact 7.2MP DSC-T10 Cybershot camera from Sony is doubly effective at reducing blur, utilizing Super SteadyShot Optical Image Stabilization and a high sensitivity (ISO 1000) for great shots even in low light. You can create slides shows with select music playback for viewing on the extra-large 2.5 in. Clear Photo LCD Plus screen. With Stamina power, you can shoot up to 250 pictures on a full charge. 56MB of internal memory allows you to shoot and store pictures even if you've forgotten your Flash memory card.