The good news is, all name brand digital cameras take great photos.

I will give you a starting place.

For about $180 you can find the Canon A510.

Here is a review of the camera:

After you read the review, I suggest you go to a store that will let you get your hands on the cameras. I believe you will find the A510 at Staples, Circuit City and WalMart.

See if it is what you have in mind for fitting in a pocket and see how it feels in your hands.

Even if you do not choose that camera, you will then have a better idea of what you want.