I agree with Mittleman that you need to really consider what you will be shooting and how you will use the camera. SLR's can definitely be a hassle for everyday shooting if you carry multiple lenses. Unlike Mittleman though, I'm a professional "amateur".
I have been using a Canon A60, 2 megapixel that I bought at Target for $200. I bought it as a point & shoot that I could just keep in my truck or motorcycle. I never expected much at all but it turned out to be one of the best cameras I've owned. The 2 mp was plenty for me since I could get tack sharp 8x10's out of it. I hate to admit it but I've abused the little camera something terrible and it just won't die. I have frequently used a Canon 520 and a Canon 620 with equally good results. However, the latter two didn't recycle nearly as quick as the cheaper A60. I've also used an Olympus 730 3.2 megapixel with a 10X optical zoom for a while now and it is a fabulous camera but a bit awkward to use with it's cumbersome menus and controls.
I swear by the Canon SLR's and have a chunk of money tied up with them. My only complaint with the small Canons is that the flash output on Macro shots is not very accurate and takes some fiddling. Sony's cameras are top notch for macro shots. I do a lot of closeups so this may not be an issue for some people.
A few of my personal opinions(your mileage may vary):
Don't spend a fortune on megapixels if you aren't going to do any prints larger than an 8x10. 2 has been plenty for me.
Look for optical zoom and ignore digital zoom. Digital zoom rarely holds sharpness.
XD and SD cards are really hard to handle if you are arthritic, have big hands or fat fingers.
Compact flashcards are really easy to handle...bigger.
Go to the camera store and hold several cameras. Some are poorly designed and aren't really comfortable to use. If you can't figure out most of the features without the manual then you might find youself with a camera where you have to grab the manual everytime you use it. Some are just darn confusing.
Don't be skimpy when it comes to flashcard size. A 256 meg is a good minimum. You don't want to be in a position to catch that once in a lifetime shot, only to have your camera say "Card Full".
You can't go wrong with Canon, Nikon, and Sony.
Just my opinions....I could be wrong.