Panasonic Lumix DMC-LZ8 8.1 Megapixel

Panasonic's Lumix series is one of those cameras that stand head and shoulders above the rest of a very crowded pack of digital point-and-shoots. It is very compact, well-constructed, with fantastic optics (Leica). I bought the used LZ8, which is an older model, because my new Lumix FX500 was WAY more camera than I needed. I love the newer one, but decided to "right-size" my purchase because I did not need a camera that had enough technology built in to launch a satellite! The FX500 is one that James Bond would love. But the LZ8, just out of the box, was very easy to use... very intuitive menus, etc. I was making nice photos within 30 minutes of receiving this camera.
You get what you pay for - the LZ8 has a plastic + metal body while the higher-end Lumix models (FX) have brushed aluminum bodies (very, very sexy!).
I've now owned 2 Lumix models, and I can predict that you will not go wrong buying any of the Lumix series cameras from Panasonic. (No, I don't work for them... or for anyone else, either LOL.)
First thing I do when receiving a new camera is to do an edge-to-edge sharpness test of my own -- the Lumix series passes with flying colors. Another thing they do, that most other cheap cameras do not, is excellent, TRUE MACRO photos. They focus to around 2 inches. That is fantastic, and great for photo-ing my coins that I sell on eBay. That level of Macro focus is equivalent to about a 10x magnification! Fantastic for coins, jewelry, etc.
Lumix models are in my Holy Trinity of "fine" but cheaper cameras -- Lumix, Canon PowerShot, and Sony CyberShot. Stick with these and you will always be happy... well, maybe just contented ... but that's better than disappointed!