I recently upgraded from on Olympus Stylist 800 to a 1200. These are small cameras that I keep in my fanny pack so I’ve got a camera with me at all times. (For serious shooting I use a Canon 20D.). The 800 was great, the 1200 is better. Smaller, slicker, and an ASA setting of 6400, the latter great for me because I shoot in a lot of low-light situations, like music in night clubs and I neve use a flash. The light sensitivity on the 6400 is unbelievable. About $300 from BH Photo.
I shot a very dark corner of a room and it looked like the camera had painted it with light. Here’s a shot (panorama of 2 actually) of our kitchen last night: