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The obvious recommendation is the panasonic LX3, which incidentally was reviewed just the other day on this site. It has excellent image quality compared to most compacts, and a fast, wide angle lens (24mm equiv).
The only issue is it is out of your price range... selling for around $500 at B&H Photo/Video at the moment. You might be able to pick up a used one on ebay for $350 or so.
You might also consider the Fuji Finepix F100fd, or one of the Canon IXUS series cameras... they should be under $300 and are smaller and lighter, and have 28mm wide angle. Manual controls and image quality doesn't match up to the LX3 or the Canon g10 but they are still pretty good unless you want to do big enlargements.
Oh, the other thing is the LX3 has a relatively limited zoom lens owing to the ultra-wide angle and fast speed (it is f2.0 at the wide end and f2.8 at the long end). It is 24-60mm equivalent so maybe not long enough for your liking. In which case, if you want small and light (not canon g10) I would check out the Canon IXUS and Fuji F100 I mentioned above.
Edited by ashleyb on 08/14/2009 22:49:28 MDT.
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