I really like my Canon SD1000. Takes decent pictures, has a rechargeable battery that'll shoot about 200 shots (maybe more) and fits easily in a pocket. There are better cameras out there, for sure, (like that Leica I've been coveting) but it wasn't expensive and it works.

A positive attitude may not solve all your problems, but it will annoy enough people to make it worth the effort. Herm Albright (1876 - 1944)