We purchased a Panasonic TZ5 earlier this year and LOVE it!! I was looking for a camera that I could slide in my pocket that had a large display screen on the back. This one isn't quite as slim as I would have wanted, but it still fits in my pocket or purse very easily, and the quality of pictures is great!!
It has 9.1mp, 10X zoom, and what they call "Auto Intelligence" mode, which automatically adjusts all your settings for you when you are shooting. Or, you can select a mode such as portrait, fireworks, pets, food, ect... Another nice thing is that it will shoot video in HD, so if you are wanting to take nice quality short videos, it's great for that.
It's not cheap, but it's not expensive either. I think we spent just under $300 back at the beginning of the year, but I just looked it up on
Amazon and they are listing it for $223.84. After all the compliments I've received about the great pictures this camera takes, I think it's definitely worth it. 3 of my friends have purchased one of these, and another is hinting very strongly to her DH that she wants one for Christmas.
There is a TZ4 that it very similar and less expensive, with the only difference being it is 8.1mp and it does not record videos in HD. We purchased this one for DH's parents right before our Disney trip in October from Costco for about $200 and it came with a camera bag and a 1g memory card. They love it!!