Our new Point and Shoot digital camera, for when I don't feel like lugging out a massive bag of gear.
Our last point and shoot (our old trusty Canon S400) got stolen a few months back. This is it's replacement... I bought the leather case and got a SanDisk Ultra II 2GB SD memory card for it. I will also be ordering another battery because the IS while really nice does eat up battery quickly.
The Canon SD800 IS, and while it doesn't do RAW, and it doesn't do full-manual operation it does take amazing photos and seems to almost without fail choose the right flash power automagically. Furthermore the built in optical IS is wonderful, why they build P&S without it is beyond me. For a really compact digital camera this is it for me...
Photo Tech Info: Photo taken with my Canon 20D on a mini tripod with a Canon 100mm f/2.8 macro lens. Camera was placed on a white sheet of paper to function as a background. A Canon 580EX flash w/ STO-FEN OmniBounce was fired wirelessly off-shoe via the Canon ST-E2 transmitter.