Our daughter wanted a digital camera for Christmas. The Polaroid i1237 is the one we ended up getting. It turned out to be the best buy for our buck.
This camera kills normal batteries like crazy. However when using the rechargable batteries. It works like a champ. Unlike our camera. It takes great pictures in a darkened room. Which is great as it will take great pictures for the kids school concerts. etc. This is the one feature that I like as my digital camera wasn't to good at that. This is why I say "she got a better camera than us! To bad it is her's and not ours.
It has many different options for photo taking, one is a capture a smile option. Which really captures a smile. The pictures turn out awesome! In this mode it highlights the person while darkening the background. You can also change a picture to look black and white.
The video on this camera is wonderful too. It is very easy to use. It picks up the audio nice as well. You just switch the camera into Movie mode and away you go. This is the next camera I will be buying for myself.