Olympus has recently released a new camera called something like Olympus mju 720 SW. The thing I find facinating with this camera is that it is waterproof down to 3 meters...about 10 ft or something like that. If I had only know about this before I went snorkeling with sharks in Malaysia Well, I guess it is so new that I haven't really seen any tests of the camera yet but I might get this for future trip to sunny beach destination :-) Here is an article about the camera: http://www.dpreview.com/news/0601/06012602olympus_720sw.asp
So far it looks like a good zoom and a small tiny camera has been impossible to but together. I have a Canon S1 IS and it has a 10x zoom which is great...but the camera is bulky I'm afraid. So it looks like you have to make a choice...
It's small so it almost fits in the cell phone carrier of my messenger bag. The pics are really good and it zooms in for really good closeups. Circuit city also had it on sale. (I knew you'd like that!)
I just read the reviews of both these cameras and noted one disturbing thing: neither camera has a view finder! So yes, these means I'm one of those uncoordinated people who must use her head to ensure an in-focus shot. I realize that most of the digital cameras are increasing the size of the LCD screen, but either because I'm uncoordinated, old fashioned, or maybe a combination of both, I still want a viewfinder!!!
I'm going to have to check out the Casio that Palma mentioned and the Panasonic Lumix dmc-tz1 that Jackie likes. If I find anymore good info, I'll post to the forum.