I just recently purchased a new camera for myself and my wife. I've been doing the digital thing for 4 or 5 years now (started with a Mavica 85).
Don't buy the hype. Sony pushes the mavica floppy & CD line as being more "user friendly" media. That is the farthest thing from the truth. Unless the resolution is low, you can't fit more than 10-12 pics per floppy. So if you want to take a lot of pictures, you end up toting around a box of floppy disks.
The CD format is propriatary...you can't use any old CD-Rs in the unit. You have to use Sony's CD-R's. Not too cost effective.
I bought a Canon S200 for my wife (retail of around $299). I also purchased a 128MB compact Flash card from Costco for $50. Using the best possible resolution (2 MegaPixels*) she can store almost 135-140 shots.
I also just purchased a Fuji S602 for myself. I'm a bit more of an advanced users, so this model really seems like it will suit me. A 6X optical Zoom, 3 Mega Pixels, and an additional 128MB compact flash really suit me. But it's a little more pricey (around $500 on the web).
Let me know if you have any questions. I love talking tech stuff.....it's one of my favorite things to do at Disney....taking photos.