In reply to John Wood:
That "do try one out first" advice that usually gets trotted out is dead right.
I had a play with a couple of cameras over the weekend, a digital SLR and a compact. It was a higher-end compact, aimed at the crowd who'd find an SLR too big.
The SLR was lovely. The compact, in comparison, was almost unusable. The picture in the viewfinder was very, very dim, and it felt like it was displaying at about 4 frames a second. If someone moved you couldn't keep up with them - they just went out of view! It was terrible. Who cares about megapixels and lenses when you can't use the bloody thing because the viewfinder's rubbish?
(As an aside we've got a canon ixus. A bit old now but has been very reliable and really tough - no sticky out bits to get busted).