Nikon Coolpix 7900
Nikon's second seven-megapixel Coolpix shares much with its companion model, the Coolpix 7600, including automatic in-camera red-eye reduction, a 3X optical zoom with ED glass, and Nikon's Face-Priority AF-which actually finds the face in a portrait subject and focuses on it rather than extraneous details! But the 7900, which also saves to SD cards, has a bigger, two inch LCD (as well as an optical viewfinder), and it's powered by a rechargeable lithium-ion battery, not the 7600's AA cells. It also takes the thin-profile Duracell CP-1 battery, a supercharged one-shot lithium cell.
About $385.