Any tips on what to look for in a digital camera?

Hi Sabina!
Your question is quite hard to answer. To me a P&S camera shall have reasonably fast (bright) optics, good zoom range, image stabilization features, low-noise sensor, be responsive with a shortest possible shutter lug, have a big high-resolution display. I'd prefer also to have a swivel display: that helps a lot for macro shots or in some tricky situations when you need holding your camera overhead.
It's quite hard to find the camera which fulfills all these requirements simultaneously. There are tons of sites, doing camera reviews (for example dpreview, cameralabs, steves-digicams, etc.), check them out.
Probably I'd go for Canon S5IS. This camera deliver rather good image quality. It will not fit into the pocket, however it isn't that big to carry it while traveling. This is just my personal vision of the problem.

Hope that helps.
Yuri

Hi Yurick!
You right it is not a simple question, in that it is not a specifi one and so 'yes' or 'no' may not be sufficient. I am also considering not only if the camera fits in the pocket but also whether if fits the budget as well. I definately agree with good zoom range and a big high-resolution display. Olympus cameras seem easy enough, but I will have a look at the Canon you've suggested. Thank you for being specific.

Whoa, manual SLR are somewhat complicated for people who aren't used to the settings. Why don't you try DSLR? D40x from Nikon. It's not point-and-shoot tho, but I really think it's easy enough even for someone who never had a digital SLR camera before. I bought one, its photos are comparable to my other pro DSLR cameras but the camera itself is reeeeeally easy to use (just like a point-and-shoot camera, well almost ;-P). Check it out, ask around ;-) I'm sure you'll like the Nikon D40X :-)

true, manual SLRs can be a bit fiddly, particularly for those who aren't used to them. However, in my case this is all I know, plus I am somewhat technologically challenged so manuals are a bit easier for me.
I would love a digital SLR, but for now it doesn't fit the budget. I thought I'll get a digital p&s just for the happy snaps, you know?

Sabina,
Personally I think the new panasonic FX500 is a very good PnS camera as it has some manual setting for you to play around and the size is really compact. And with their famous OIS and wide angle lens...you can take some great travel pics......

just my thought,
zzkang

cool, thank you. I'd like to know what you think about Olympus cameras, found one and it fits the budget. Don't you just love budgets?

If you are going to use your camera in rough condition...I think you can go for Olympus 850SW or 1030SW...the new FE340/350 also create quite good quality image...I'm using Olympus DSLR (rather than Canon and Nikon) because of their Zuiko lens... :) hmm...if you are in a budget...Olympus is a good selection...
Recently I found a new compact camera from fujifilm...finepix f100fd...check it out here...I personally think this camera is the closest competitor to lumix fx500 and one of the best compact in current market...

Hi Sabina,

For your first digital camera, you might do well to keep in mind the very real possibility that shortly after you master it, you will outgrow it. This is not a bad thing. Your first digital will give you a ton of experience and provide a solid background upon which you can make sound decisions when you decide to upgrade to digital camera number two... and three... and four, if you're anything like me.

But getting down to specifics... First set a budget - say $400 (doesn't have to be - this is just an example). Take a look at all the $400 digi-cams out there and select features in the following order:

1. The largest number of megapixels in your price range
2. The largest OPTICAL zoom in your price range - ignore any reference to DIGITAL zoom.
3. The biggest high resolution display you can find.

That's it. If you stick with recognized brand name manufacturers, I'm sure you will find that almost all entry-level digital cameras have the same features, controls and buttons... they're just located in different places on the body of the camera. As I mentioned earlier, you're looking at a learning experience. A year from now, you should have a very good idea of what features are important to you and fit the unique way you approach photography.

Most of all, HAVE FUN WITH IT !!! If something doesn't work, just hit the delete button and give it another go. No more guilt over wasting film... yaaaaaaa.

Hi David,
Thank god for the 'delete' button, hey? Appreciate all the hints and tips. I've got my eye set on an Olympus which fits my budget of $300-400, 8 mega pixels, 5x optical plus (better than 3x but less than 7x) dual image stabilization (not sure what that is).

If you've gotten familiar with your SLR, my advice would be to go to a DSLR. You can leave in on Auto mode if you don't want to learn about digital settings just yet. You will definately grow into a DSLR quickly and probably outgrow a Point and Shoot just as fast.
That said, there is the extra price for a DSLR over a point and shoot. If you can afford the extra cost it is well worth it.