Canon Digital IXUS 980 IS
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My mum got my dad one for xmas.
My dad is a good photographer and has some quality kit. My mum wanted to get him a decent priced wee camera but was still really good quality for taking on holidays - especially for walking around dodgier neighbourhoods - cos she feels paranoid when my dad takes out his big camera bag.
Its a really nice camera to hold and the pic quality it really good.
The menu dial seems a bit mad to start off with but its actually pretty cool when you realise how it works.It's a decent little "all purpose" compact for both the average snapper and going a bit more indepth - you can switch to having full control over everything rather than automatic.
Its a good camera for the price, but if you were wanting something to "build on" then you'd be better going for like the RIcoh GX100/200 something similar that you can add aftermarket lenses to and has a hotshoe for flashes etc.
From what you said, sounds like the camera would suit you well if its just a camera for having on you all the time. It is really small and about the size of a bulky mobile phone.