thanks for the websites the helped.
I am now looking at at sony cybershot tx9. It has a 32Mb worth of memory (plus it accepts the memory cards we already have) face detection technology, 3.5" touch screen monitor, steady shot image stablization, 3D sweep panorama capture, 10 scene modes, 9 point focus, burst shooting mode , white balance modes, HD movie mode... for about 350 bucks.