A friend asked me what digital camera she should buy. Her criteria were that it be small and inexpensive. My answer: the Pentax Optio S40 with a 256MB or 1GB SD card. Why? It’s less than an inch thick, is hovering at just over $200, and works well.
[note:] it looks like the deal on the Gateway DC-T50 is gone. However, it’s likely that every camera named here is better anyway.