We have a Nikon D40 dSLR and it is great when we use it.
Only problem, is that I'm not that great at bringing it places because of its size. I need something that I can just leave in my purse and have it at all times. We're looking at investing in a point-and-shoot but I'm just not sure what to get. KC definitely wants one that has Image Stabilization (optical) but that is really our only requirement. Previously, I have had 2 Sony cameras and would prefer to not get another. I would like something that has 'share-able' media with other devices, not one that is proprietary to the camera itself. I'm not sure how I feel about the LCD screen on the front, if it will be useful or not. Does anyone have one? Do you like it?
There are just so many different options out there and KC is definitely a researcher, but we need to start somewhere so I'm looking for suggestions, recommendations or even something you would not recommend.