GO for a NIKON COOLPIX S550 . I have it and you wont believe,it shoots like a 20 Mpix cam. Its loaded with some awesome features and the price is unbeatable as well. Around 200$ in US and 250$ in India. Features: # 10.0 Megapixels for stunning prints as large as 16 x 20 inches 5x Optical Zoom-NIKKOR Glass Lens NIKKOR optics New EXPEED image processor Electronic VR Image Stabilization Incredible, Bright 2.5-inch High Resolution LCD Smile Shutter and Blink Warning Auto adjusts up to ISO 2000 Nikon Image Innovations include: In-Camera Red-Eye Fixâ„¢ 15 Scene Modes for optimized shooting in various settings. High Quality TV Movies with Sound
I'm a Nikon fan, if you want a serious digital camera go with the Nikon SLR models D80,D90,D300 but they ain't cheap.
Dude in my personal opinion Sony are the best no matter wich model, also Canon Rebel are pretty tight to.