We just bought a new camera (I think a Cannon sure shot) that takes video etc...It's nice and small but with kick. I don't fully understand mega-pixal speak...but my DH who is an expert on such things says it's great. We got an older model cheaper because we wanted to buy our own batteries rather than use the manufacturer's rechargables (I can't remember to plug my cell in and I use that every day).
However, I still love my Pentax Optio. Can't do video but it's water resistant to like 25 feet underwater...great for theme parks and other kid related occations. It's small, easy to download and idiot proof when taking the pictures.
Of course, within a couple of weeks of buying our new camera, I also won a camera as part of our United Way drive. It was a really expensive docking camera, but I haven't even used it yet...too many bells and whistles, no time to learn them.