I'm taking a break from Canon to consider other cameras. The Casio Casio EX-V7 is a nice compact camera if you don't care about an optical viewfinder ($200)
Specs: 7x zoom, 7mp, 2.5in LCD, optical NR, CIPA 240. Dimensions: 3.8 x 2.4 x 1.0 in (0.2 longer and taller than the Canon SD 850).
The 7x zoom is pretty exciting. That kind of range implies some optical trade offs, and indeed there are some: corner blurriness and barrel distortion at wide angles. The corner blurriness isn't so bad, actually, but the barrel distortion is pretty noticeable in lab tests.
It also has a really good movie mode: it allows optical zooming while recording movies, and it records to h264, which is a really efficient codec with small file size and good playback compatibility.
Some reviews:
http://www.kenrockwell.com/casio/ex-v7.htm
http://www.dpreview.com/reviews/CasioEXV7/
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