Ultra Compact Digital Cameras for a busy, cheap mom

I've been wanting a little camera to take places with me. My husband has a great camera that takes very nice pictures, but it is larger than I want to deal with. Here is my feature set:

• Small -When I'm out with my kids with my purse and a diaperbag I don't want to have to haul a third bag for the camera. I want something that will fit in my purse or pocket and not add a lot of weight.
• Decent movie mode - I want something that takes at least 30 fps at 640 X480 (this is TV resolution so it will look good (instead of blurry and shaky) on the family DVDs I make). Our camcorder uses minDv and it is a pain to capture the video to the computer. Basically it takes as long to capture as it does to play and I have to babysit the capture program to make sure it doesn't suddenly start not capturing. With a digital camera, the movies are copied much faster.
  
• Image stabilized - I blur photos in low-light situations because I can't hold the camera still. Also, this is great for movies so they aren't bouncing. Unfortunately, this requirement threw out a majority of small cameras. The choices were Canon and Panasonic. (I think Sony had one too, but cost way too much.)
  
• Not way expensive - I know this is relative, but I have kids and I will be sticking this camera in my pocket. I don't want something that costs so much that I'm scared to take it with me or totally depressed if it gets scratched.
• Fast - I want to have it up and running quickly to catch my kids being cute.
  

The contenders

• Panasonic dcs-fx01 - price $200 , ultra compact
  
• Canon SD700 - price $300, cute elph
  
• Canon a710 - not compact, but good movies and zoom, $320, compact, about the size of a regular point 'n shoot
  
• Canon S2 - this thing is the size of my camcorder, but it kicks butt in taking cool pictures and good movies. It also has a 10x zoom. (most regular cameras have a 3x zoom.) Cost $270. A lot of people who have a dSLR get this camera so they have something more portable, but the thing weighs over a pound. It does zoom during movies, unlike most other digital cameras.
  

I ended up choosing the Panasonic fx01. It had the features I was looking for and the price was what I was willing to pay. I wish the S2 was smaller, because that is a cool camera, but I really didn't want to lug a large camera bag around.

So here are the pros and cons of the FX01:
Pro

• price
• image stabilized
• good movies
• small
• will do long exposures (up to 1 min) (This is a feature my husband would like)
  

Cons

• Image quality (some lowlight pictures just look noisy. Check out some of the reviews to see if this bothers you.) To me, it seems this would only become a problem if I wanted to print an 8X10 of a picture, which I don't usually do. I print 4X6s or watch them on TV.
• Movie sound is mono, it will not sound as good as a camcorder, although I didn't think it sounded bad.
• Movies are stored in QuickTime (.mov) format. This means that Windows Movie Maker will NOT handle these files. I own Nero 6 which will grudgingly handle .mov , so I'm OK.
• proprietary battery - (all ultra compacts do) this means if your batteries die while you are out, tough luck. The battery from Panasonic costs around $35, but I can get ones on eBay for $20 if I need to.
  

So the camera is now on order and should ship today. I'll review it after I get it.

If I didn't care about the image stabilization, I would have probably gotten either a canon SD600 or one of the Casio Exillims. (Exillims are very cute cameras.) If I didn't care about size, S2. If I didn't care about price, SD700.

Resources:
http://www.dpreview.com
http://www.dcresource.com