Well I finally made a decision and bought a Sony DSC-T200 and got it in yesterday. After playing with it all night I am very happy with this camera. The pictures are very nice, at least for a novice like me. The 3.5" screen is beautiful and the touch screen is a breeze to use. It has got alot of cool special effect features and the movies that it takes are excellent.
I am amazed how much they packed into this little camera. Plus the fact it takes pictures in HD and I got the docking stations to hook it up to my tv and my computer, which makes viewing and transfer a pleasure, no fuss at all.
My wife loves it and I feel that we made a great choice for two newbies like us. I am sure that once I get some experience I will look into a higher end camera, but for now this does the trick. I wanted to to give everyone a heads up and to thank you again for all your help. If anyone has any questions about the camera please let me know and thanks so much for all the great advice.
Next is an HD video camera...