I have been delighted with the Canon Powershot A480, which I bought a month ago. I purchased this as a 'handbag camera' - a relatively cheap, small camera, which does indeed fit easily in my handbag. I was pleased to be able to buy such a high resolution camera for this purpose.
I've taken it on a recent holiday, and the pictures are fantastic. The different mode functions are easy to use - I've been particularly impressed with the supermacro function, which I've used for taking pics of flowers; and the aquarium mode, which I've used for taking pics of museum exhibits which are behind glass.
My only drawback is that I'm currently struggling to register to use Canon's online photo-sharing service 'Image Gateway'; but the helpful tech guys are sorting that out for me too.