DP Review is where I like to go for camera reviews and active forums. I shoot with a 40d and a couple nice lenses most times. For out on the town with a tiny camera needs, two cameras came out on top of their latest review:
The Sony W120 ($130) and the Panasonic LZ8 ($110). You can read their conclusion here and click through to the whole detailed article too.
DP Review review link.
Update: In 2011, the best pocked camera for under $400 is the Canon S95. I have it and it is fantastic. A huge improvement over cameras from a few years ago.
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