Tom -- I'm not a Canon user, but can offer some things to watch for depending on your intended usage. I started digital work with an Olympus, then a Nikon CoolPix 5700. Both were fine for still shots, landscapes, etc. But stunk at candid photos and action shots because of the lag time between when you press the shutter and when the shot is actually taken. Both were also pretty clunky when it came to changing settings. I also tend to take a LOT of shots of meetings, parties, dogs etc. I found the AA battery life left a lot to be desired, and both went into an inactive mode after 30 seconds to prolong battery life. The problem with that is it took them several seconds to come back to life, and that wait cost me several good photo opportunities. Let's face it, most chances are fleeting.
I now use a Nikon D1x which is compatible with all the lenses from my Nikon SLR. Instant on, easy to change settings, 6megapixels, batteries that easily last 1000+ shots, seamless integration with the SpeedLight and resolution that gives me photo quality prints at up to 16x20. It's more camera than I could afford (about $1500 for the body alone), but the company bought it for me so I'm having a blast! No more missed opportunities for me!
If I had to buy one myself I'd look at the Nikon D70 or the Canon equivalent. Canon has done some great work with image stabilization. But that level of camera fits my needs, and might be overkill for you. Just watch the lag thing -- it's by far the most annoying feature of the cheaper digital cameras.
Pete