Tons of good advice on the small camera front... unfortunately I may have moved too quickly... The requirements turned out to be:

• Under $300
• Available at the local camera shop

That was about it... I ended up buying a Canon A70... we have 10 days to return it, so if it really sucks I can still recover. So far this has passed the most critical step - Megan likes it. I think that Michael's suggestions (non-canon) would have been good to investigate - as it was I panic purchased and went with a brand name in the price point that I wanted...

Oh well... I do like the movie feature though...