I have had a couple Canon Powershot cameras in the past.

Pros
Good build quality
Excellent lenses

Cons
Fair sensors. Not really strong in dark rooms (a common problem with lower end cameras)

But both just plain died shortly after the warranty had expired.

It's very possible that I had a run of bad luck, but you may want to think about the extended warranty.
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We have this camera.

Pros:
The pictures are good, especially in daylight/bright light and it is easy to use with several features. We have had this one for almost 3 years and it is still working even after having a dip in the splash pad (about a foot of water) even though it's not waterproof.

Cons:
I agree with brian san that it is not great in dark rooms, but as mentioned most lower end cameras are, the flash isn't bright enough.
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Pros: Very compact camera, good qaulity pictures, easy to operate and has a viewfinder (great for use in bright light conditions)

Cons: Poor build qaulity, minimal capibilities.

I would recommend the Powershot A590 IS, still in the compact range, a little heaver, many more features, Very good quality pictures and within the same price range, about $200.
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This Canon Powershot SD1100 IS is a great camera both in terms of value for money, and in terms of usability by a novice. Featuring 8 mp's and 3x optical IS zoom this digicam comes equipped with Face and Motion Detection and has a 2.5-inch LCD screen.

http://www.steves-digicams.com/2008_reviews/canon_sd1100/canon_sd1100_450.jpg

# Pros: Very good photo quality and saturated colors, Optical image stabilization, Snappy performance, Great LCD visibility, Easy to use interface...

# Cons: Noisy images in low light, Poor white-balance under artificial lighting, Corner blurring and purple fringing, Zoom setting not shown on LCD, Weak flash, Batteries drain quickly...

Here are some sample photos from http://www.steves-digicams.com

http://www.steves-digicams.com/2008_reviews/canon_sd1100/samples/img_0047.jpg

http://www.steves-digicams.com/2008_reviews/canon_sd1100/samples/img_0003.jpg

http://www.steves-digicams.com/2008_reviews/canon_sd1100/samples/img_0010.jpg

http://www.steves-digicams.com/2008_reviews/canon_sd1100/samples/img_0017.jpg

Review from: http://ezinearticles.com/?Canon-Powershot-SD1100-IS-Digital-Elph-Camera-Review&id=2025621

"The camera is easy to setup and easy to use, perfect for beginners and pros alike. It also has a quality construction and comfortable controls which also makes it easier for users to use it. The Canon PowerShot SD1100 IS is perfect for taking pictures on travel and during family events because of its easy grip, but it will also be sufficient enough for photojournalism, just tweak the settings a little bit.

But, like every gadget there is, the Canon PowerShot SD1100 IS also has its own set of flaws that are determined by other user. The downsides include its poor image quality when in low light, and the poor battery life. So when you use it, make sure you bring the charger along so you won't be disappointed too much. Some users also commented that the camera has a long lag time which results to a longer time for the camera to react to certain functions."

You can get a detailed review of this camera here:
http://www.steves-digicams.com/2008_reviews/canon_sd1100.html

And user opinions here:
http://www1.shopping.com/xPR-Canon-Fujitsu-MBA3147RC-147GB-15000RPM-3-5-Inch-Serial-Attached-SCSI-SAS-RoHS-Hard
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