For a number of years now, I have been recommending the Canon Powershot series of point and shoot digital cameras to everyone thinking of buying a relatively inexpensive but surprisingly capable digicam. Thanks to a firmware hack called CHDK, it seems they can be made even better. You can activate features normally available only on much higher end cameras, such as live histograms and taking pictures in RAW format.
Unfortunately, the A510 that I use to take all the photos on this blog is too old for the software. When it finally kicks the bucket for good, I may well buy a camera that can me modded in this way.
I learned about this via flying penguin.