What is the best digital camera i can buy? I am looking at spending around $600 AUD?

I'd recommend either the Canon S5 IS or the Sony Cybershot DSC-H7. Both are 8 megapixels, and offer big megazoom lenses (the Canon is 12x, Sony 15x), and the reviews all say they have stellar image quality. Both have image stabilization to offer better pictures in lower light situations, and both also offer a 2.5" LCD, although the Canon's LCD can swivel away from the body, so if you're taking a picture with a friend, you can turn the LCD to see that you're both in the picture.

I've included some links below to reviews and a side-by-side comparison, as well as the website I used to find the prices for them, the Canon for 585AUD and the Sony for 589AUD. Either one will suit you well, just look at the specs and see if there's a difference maker to you.

Hope this helps. Feel free to edit your question and ask more if you need to concerning the specs or contact me.

The canon A series is usually a good bet. Good lcd, good res, decent zoom, and a solid rep. They also use normal batteries, so no expensive replacements. I don't know AUD, but just pick the camera closest to your price. (the A series has a large range)

The first thing to realize is that almost any digital camera will take good pictures. If more people would read the manual more than once, they would be able to take better pictures. Usually, the person assumes it is the camera when it could be them not knowing exactly what to do. Just give yourself more photographic knowledge by doing more reading.

I really believe buying a camera is an individual choice.
The person needs to read alot of reviews on cameras and learn as much as they can from the internet.
Go to the store and hold them and try them to see what they feel like in your hands.
I can only give a suggestion of what to look for in a new digital camera.
Good Luck

my suggestion
go to yahoo shopping
digital cameras
digital camera GUIDE
be sure to check titles on the left side
the guide should answer your questions