a nice step up from a digi point and shoot (i’ve owned a kodak and a sony) but not all the way to a full-fledged dslr – which is, yeah, spendy and requires lots of extra gear – would be a canon g7. i have a g6. it’s marvy. have a look.
http://www.usa.canon.com/consumer/controller?act=ModelDetailAct&fcategoryid=144&modelid=14321
this is still a great site with reviews of just about everything:
http://www.steves-digicams.com/
best,
mkg