I "facelifted" my camera- got a Canon Powershot SD300. Pretty decent quality for a "point-and-shoot".
4 megapixels, 2 inch display, good editing options, 3x optical zoom, and excellent lenses.
One little problem- since the flash is so close to the lense- red eye is a constant problem. But that's the case in all pocket cameras.
I also got a 1 gig memory card, which is A LOT. I can even record long movies.