The Panasoic Lumix mentioned above is really an awesome point and shoot camera. I am really impressed with the features and quality of images it takes (friend just bought one)
I own a lower end Nikon DSLR, if you are looking for a digital SLR I would go with Nikon or Cannon. I love the Nikon but all of my other cameras are Cannon and if I had purchased Cannon, I could have used the lenses from those cameras on the new DLSR, but since I went with Nikon and it is a different mount I have to buy new lenses. Nikon and Canon are both pro grade cameras. The one I own is the D80 and it is a really nice camera (about $1600 US for the kit with a zoom lens)
If you want it to shoot video as well as stills though you might want to keep looking I believe the new Nikon D3000 shoots both and I am sure Cannon has an equivlent.
Warning the DSLRs are BIG cameras, this is not something that is going to fit in your shirt pocket. The lenses are expensive and especially Nikon lenses, Cannon lenses are a little more resonable.