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I can highly recommend the Canon S3IS or S5IS.
It has 12x zoom, an incredible macro capability and it also doubles as a video camera which records up to 30fps at 640 x 480. You can choose lower quality to save on space.
Of course you have full creative control as well in Manual mode.
I've just bought a Canon 20d, but there is no way I'm going to get rid of this little camera. It's the perfect grab and go compact.
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