I'm pretty happy with the Canon PowerShots. (After lots of research and returning a Panasonic and Fuji) I bought a bigger one with the flip-out lens and (after lots of research) the reporters at my company were given smaller pocket-sized PowerShots to use that produce very nice pictures when they're called upon to take them.
(After more research!) I bought my 11-year-old a similar pocket-sized one for his birthday, the Canon PowerShot A590IS 8MP Digital Camera with 4x Optical Image Stabilized Zoom (about $105, free shipping from
Amazon.com). Except for the flip-out lens, it has most of the features of my bigger camera plus a manual mode.
Then my older son (after researching cameras) bought the same pocket-sized PowerShot as my younger son this November.
In December, our company was purchasing wish-list gifts for a family; one item they wanted was a camera and I ended up being the shopper (without time to research it or order it online). I tried out every pocket-sized camera on display at Target and was really disappointed that when I try to catch a picture where I had to zoom in, it was very fuzzy (on most of the pocket digital cameras you can look at the picture and zoom in on a detail just by operating the zoom feature).
I headed over to Office Depot instead and found a great Canon PowerShot pocket-sized that took beautiful pictures. All of the Canons we've purchased use an SD card (you can store tons of photos on a 2G card) and AA batteries (I alternate between rechargeables and dollar store batteries), which are easy to find anywhere.
I have Windows Vista and it's super simple, but my printer has a place to insert the SD card. When I put the card in, a screen comes up and name the set of pictures, then go to "pictures" on my menu screen and they're there.
The Canons take nice digital video too. Obviously we recommend the brand--we've bought six cameras and the four we liked were the Canon PowerShots.
Just FYI, Office Depot and Amazon have been wonderful in the past about refunding money for a camera returned right away and their prices are great to start with. With the financial situation of Office Depot I'm not sure that's still the case but I did make a return after Christmas at Amazon and it was the easiest thing ever. I hate returning items but they make it so easy I don't mind shipping it back if it's an item I'm not going to keep.