I have used a Minolta Dimage G500 quite a bit. It is a nice 5MP camera with quite a few bells and whistles for less than $400. It is very compact, has an excellent battery life, takes good color quality pictures, and supports both SD/MMC and Memory Stick. It's worth checking out.

EDIT: I have a buddy who loves his Canon PowerShot A80. It is only 4MP, but it takes some nice pictures.