You absolutely CANNOT go wrong with the Cannon G10. It was my first "nice" camera and at 15MP with RAW shooting capability, offers ALL of the same settings, manual and otherwise (plus a few nice point and shoot settings) that the bigger DSLR's have. The digital zoom has the equivalent of nearly a 250-300mm lens. When I sold mine to buy a DSLR, I severely missed the ability to shoot not only SWEET video (not HD but close) but also have had to save up for additional telephoto lenses just to get the same range the G10 came with. On the non-zoom side, I believe it widens to a beautiful 18mm to capture great indoors.
I bought this camera, read the manual and did some research on photography and it opened the door to a professional career. I will most likely buy one again as my back up as they are much smaller than a DSLR and easy to pocket wherever you go. The current model (G11) has not had as good of reviews as the G10. This is a double bonus; being the previous years models, if you are intentionally shopping for a bargain you may find one on closeout or Craigslist for $300.00. Currently selling on ebay for around $375.00.
Good luck.