We have the Panasonic Lumix TZ5, and abolutely love it!
I have 2 little girls, and with my older cameras, I was always getting blurry pics trying to get action pics of them... but with this one, they are always crystal clear. I love the quality of this camera's pics!!
It's a nice size.. not too small, definitely not big.. and it uses a rechargeable battery pack (BIG plus imo)...
In fact when we took it last year to Disney, we had bought a 2nd battery pack for it, thinking we'd keep it in our backpack in case we ever needed it.
We went that entire week, took thousands of pics, and never used the 2nd battery! (recharged the original every couple nights).
I'm looking now at the successor to this (the lumix ZS1), to buy for our Alaskan cruise in July, but probably going to keep this one as well for dh to use,
ETA: Hmm, I'm googling stuff, and see that just recently, there's been a brand new successor to the ZS1.. might be getting that one instead, lol!