which digital camera is good for my need?

Hi,
This Holiday season, I am planning to buy new digital camera for my family. My main purpose of this new camera to take good picture. I have Canon PS that i bought 4 yrs ago. It was 4 MP one. I don't care for shoot small movie in it.

I am thinking about another Canon camera with new features. I could live with 7 to 8 MP but looking for better optical zoom and digital zoom. I know we see lots of request about this subject and i have narrow my feild down for you guys to advice me. I want to spend $200- $300 for my new camera. Please suggest.....

Thx.

I've seen this camera on sale for $360.
http://www.dpreview.com/reviews/canons5is/

I just tested a Panasonic FZ 18 and ended up taking it back because the picture were really disappointing. If you read reviews of Panasonics, one problem is that they have a very aggressive noise reductions but sure about the one cfvh600 recommended.

I am a user of Canon Ixus 950 IS.
It is quite all-rounded.
It has quick response, 4x optical zoom which is good enough for a compact camera, and the optical anti-shake function.
With 8 Mega pixels, it takes a lot of good pictures.
The auto lighting and colour are alright.

I know there is a newer model 960 IS, which is a upgrade of mine.
960 IS is of 12 Mega pixel. I think it is a wise choice for you.