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@eddie
if you can stretch to buy the Canon Powershot G10 (around £350ish) it will be worth it. Ive seen photos produced with that camera and they blow me away every time.
It's got 14.7megapixels and a massive 3" screen on the back to preview your photos. Super-sharp
This is like the semi pro, easy to use-produce brilliant photos camera. It even has a slot for an external flash on the top.
You can check out random photos from what people have uploaded that they took with this camera HERE just as a bit of example.
Always google some reviews about cameras to see what people who actually own them have to say and whether that crosses with what YOU want