A digital-SLR is all well and good for nature photography, family portraits, and other high-falutin' shootin', but sometimes you just want a camera you can slip into your pocket. The Casio Exilim EX-Z1050 measures a scant 0.8 inches thick but comes stuffed with features. It's available from CircuitCity for $179.99 with free shipping.
I've owned four Exilims over the years (only one of which was replaced due to breakage), and I've always been pleased with their slim designs, easy operation, and venerable Best Shot modes (which take the guesswork out of camera settings for photography dunces like me). The EX-Z1050 serves up a 3x optical zoom lens and 10-megapixel image sensor. Some might say the latter's overkill for a pocket camera, but you can always dial back the resolution if you want to fit more photos on your memory card. (The Exilim takes SD media; if you're looking for a deal, eCost has a 2GB card for $12.99.)
Now, I haven't used this particular model, and CNET's reviewer took issue with its low-resolution LCD. But other Circuit City buyers rated it 4.1 out of 5, so maybe that's not a deal-breaker. And with the deal you're getting, it'll be easy to smile for this camera.