What’s the best digital camera under $500?


I’m looking for a digital camera that’s preferably between $200 and $400 but if quality is at stake, up to $500. Wanting 8.0 mega pixels or more, with zoom. I’ll be using it to take outdoor portrait and action photography, as well as indoor usual (b-day parties…random pics…etc), and evening class reunion (so hall lighting). I’ve already checked CNet and Consumer Reports, I’m just looking for personal preferences. Picture clarity is prime, as well as color balance…I can edit the images on my computer but prefer to not have to.

I don’t know if you’re willing to carry something a bit bigger than a ‘compact’- but consider this camera

http://www.dpreview.com/reviews/fujifilms6000fd/

the Fuji S6000fd gives you a 28-300mm zoom
as well as a high ISO (light sensitivity) capability that nothing short of a DSLR will offer. Yes- you can really use ISO800 on this camera without the photos looking all fuzzy.

It’s "only" 6.3Mpix- but the difference between 6 and 8 Mp isn’t as much as you’d think, and with it’s larger ccd it rivals or beats nearly any 8Mp camera in resolution (short of a DSLR).