That's the one, Mike. I've got a full-pimp digital SLR, have been taking photos for more than 40 years, give seminars occasionally, yadda yadda. I bought the predecessor SD500 earlier this year, just leave it set on Auto. The big advantage is the big megapixel chip allows you to shoot in the general direction of what you want a photo of, then you have enough definition to crop even a very small portion and still end up with a great photo.
I used to recommend Photoshop Elements as a great amateur digital darkroom, for about a hundred bucks, but have converted to Google's Picasa. Download it for free, spend 15 minutes learning how to use it, it catalogs all the photos on your hard drive, and you can crop and enhance like a pro without a single lesson. The "I'm feeling lucky" button will fix almost any photo to your satisfaction.
Dell had the SD550 for cheap a day or so ago. Get a gigabyte card elsewhere, do a google.
Sony, Nikon, Minolta, Olympus...all of them...make fabulous itty cameras with 7 megapixels and up. You can't go wrong. Just get the one that feels best. My huge digital SLR, a pro level camera, is a great paperweight.