Hi markpeterson,
If I were you I'd seriously consider buying the Sony Cyber-shot DSC-H50 camera.
It is a LOT cheaper than the Canon and although it has a slightly lower resolution CCD (9.3 vs 12.3 megapixels), I think it has better optics, namely a Carl-Zeiss Vario Tessar lens, with 15x optical zoom (Canon has only a 6x zoom).
I have the 7MP predecessor to the Sony and I like it a lot. This "bridge" type camera is easy to use, yet it has all the advanced, manual options as well. It is compact and comfortable and has a very bright, sharp LCD screen on the back.
Sony cameras are also known for their reliability. I have two cameras and one camcorder from Sony and they've never let me down. And, no, I sadly don't own any shares in Sony :<)
Many companies sell this camera for less than €250.
Good luck,
Ornithos