just my 2 cents,

on that link that sagefisher posted, take a look at the Olympus FE-46.

That has a *lot* of nice features...such as 12 megapixels. (that's a lot)

it has image stabilization.....helps prevent blurry pictures.

it has face recognition......for better auto-focusing.

it has a 5x optical zoom. optical zoom is a real zoom.......digital zoom is just cropping (or cutting) the picture.

good luck shopping for a gift...

Brian