I have had Panasonic, Sony and Canon digital point and shoot (fits in your back pocket) type of cameras and you can't go wrong with Sony or Canon. I currently have a Sony 7 mega pixel CyberShot and very happy with it.
I use CNET before I make a purchase and look at reviews, price, pic quality, ease of use, LCD screen size and battery life. Plus Costco has both brands and tends to have good prices too.
http://reviews.cnet.com/best-compact...ent;contentNav
http://reviews.cnet.com/best-digital...tColumnArea1.0