1) Panasonic Lumix DMC-FZ4S 4.0 Megapixel Digital Camera
The lens is definitely the top selling point for this camera. At a whopping 12x optical zoom, the Leica lens is the equivelant of a 400mm film camera lens. It shoots video at 30 frames per second, and has 11 scene modes. While this isn't for someone seeking a compact camera (it weighs more than 11 ounces), it is great for someone who wants to do more advanced photography without dropping a lot on a camera.

2) Nikon CoolPix L4 4.0 Megapixel Digital Camera
This camera makes it easy to shoot quality photos, even for photo amateurs. It features 4.0 megapixels and a 3x optical zoom, as well as 15 scene modes to get the shot right. It has face-priority auto-focus to ensure your portraits are clear (and not focused on the wrong thing). There is also an in-camera red-eye fix.

3) Minox Digital Classic Camera Leica M3 4.0 Megapixel Digital Camera
If you are just converting from film to digital, or never did quite get used to the look and feel of digital, this digitized replica of the classic Leica camera is sure to delight. It features manual focus, and is compact and lightweight.