I have the Sony DSC VI. Its brillant. Does everything i want. Takes 5MP sized photos and downward to about 1.3 i think. can take footage and other neat stuff. Got it off ebay and saved at least $300+.
I am so impressed with it i even conviced Derek to get one
However, in the kayak i still use the old cheapy film one...
In a nutshell i depends on a) how much money you are willing to spend B) what do you want it for C) where are you going to use it.
There isn't much point spending top $$$ for a nice camera if you have the chance of dropping it overboard and never seeing it again (hence why i use the $200 version in the Kayak.)
I like mine. PM me for more info if interested.
Rob.