Run out model but the price and features for $330 makes it a good Christmas gift!
10 Megapixel Canon Digital Camera - A640 for $330 from Digital Camera Warehouse
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Yes that's true but it just means you have more headroom to crop down an image and still print a nice clear sized print.
camera is ~US$430 on amazon.com so this seems a reasonable deal.
no image stabilization though?
CNet review here
Nice camera although I wonder whether you actually need 10MP in a consumer camera when the lenses are struggling to handle it.