I have the Panasonic TZ8 which is a brilliant camera. Great image quality, pretty easy to use, plenty of features including video recording (720p) and manual controls. Although I will say that the low light capabilities aren't great as the ISO performance from and including ISO400 isn't that good.
The LUMIX range in general have decent camera. I've played around with the FS30 (rents' camera) and that actually has better ISO performance than the TZ8, but no manual controls.
The Canon IXUS range is also a great range to look into. I had the IXUS 75 before the TZ8 and that produced good quality images.