Mom asked for advice on digital cameras. Consumer Reports had just published an article on them, so I used it as a starting place and checked some stuff on Amazon. Because she likes her Canon SD100, she is leaning towards the SD800IS, which I guess is what I would choose too.
Amazon seems to have the best prices. For very small cameras you probably want a Panasonic, Sony, or Canon. All of these are 7 megapixel cameras with 3X optical zoom. Because they are so small, none of them take AA batteries. All but the Sony use SD memory cards.
The article likes the Sony Cyber-shot DSCW80 for $207, but you would need to spend $30 or so for a new memory card since it doesn’t use SD. It has an image stabilizer that helps avoid shaky pictures. (in black, silver, white, or pink). It has very good picture quality. The rest are good. 3X zoom.
They also like the Panasonic Lumix DMC-FX30, which is $232. It should be similar to the Sony (includes image stabilizer). Panasonic digital cameras have the fewest repairs (in black, silver, blue, or taupe). Like the Canons, it takes SD cards. It can take wide angle pictures. It is the only one without a real viewfinder, so you have to use the LCD screen (which may not be visible outside). The zoom is actually 3.6X.
Also rated highly is a Canon PowerShot SD800IS Elph for $288 that includes image stabilization. Canons come in silver or black. This and the Panasonic are the only ones with wide angle. It has a 3.8X zoom.
The Canon PowerShot SD1000 Elph does not have image stabilization and is $213. It is probably similar to what you had. It has good picture quality, but has more shutter lag than the others (time from when you press the button to the time the picture is actually taken). Some reviewers on Amazon say the picture quality is as good or better than the Sony. 3X zoom.