Jon in DC posted a reply:
I will second wetzel9's endorsement of the Canon SD1000 - my wife has one and its great - has a manual mode and a DIGIC III processor - no IS though but its under $200USD.
If I can't take my DSLR anywhere (usually for space reasons - i figure this is the essense of your q......) then i will have this little one with me as its actually smaller than my wallet and is quite rugged (in my experience of dropping it).
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