We received the Canon Power Shot SD700 IS Digital Elph for Christmas last year. We love it!
It has a 4x zoom lens, and 6.0 mega pixels. Photos look sharp and come out beautifully. Occasionally, in lower light conditions (and really fast children) there is some blurring, but I have found this to be a very rare occurance. There are several settings and advanced options, most of which we don't use -- which is why I only marked this as 3.5 in experience! But it turns on quickly and is ready to shoot quickly.
I marked it down in memory, as my gift included an upgraded memory card since the one it came with was deemed insufficient. Same with the battery. It's nice to have backups, though!
The display is quite big for the size of the camera, which fits easily in your pocket. Downloading is a dream -- superfast, easy, and photos automatically sort by date into their own folders. Similarly, printing is just as easy.
Anyone looking for an easy to use digital camera that takes fabulous photos, this is it!