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I'm after the same thing, need to buy my Mum one for Christmas and it's been a while since I looked at cameras (infact, since I bought my 350D back when it was new!). Any help would be good
p.s sorry for hi-jacking your thread, but I would have only got told off for not searching if I didn't!
Lumix FZ38 fits the bill, she wants a smaller camera to put in her bag, the 400D she has is too big :/ I'll have to look at the FZ38 in person as the dimensions don't look massively different!