I need help to decide upon which Digital camera to buy. My options are: Sony H2, Canon S3 IS, Fuji 6500fd?

Go to steves-digicams.com and read his review of them. You may also find reviews of these cameras at shutterbug.com.

Choose the one that most closely matches your needs.

Read and study the Owner's Manual before using your new camera. Do a google search for Magic Lantern. If they offer a Guide for your camera buy it. Guides such as theirs are usually better illustrated with step by step examples.

Go to cameraarmor.com and bonicadive.com and choose the best protective cover for your camera. After reading the horror stories in here - "I got my camera wet" or "I got sand in my camera" - it seems prudent to spend a few $$$ for added protection.

If the lens accepts filters, buy either a HAZE/UV filter or a Skylight 1A (uncoated) or 1B (coated) filter for it - or both. The HAZE/UV filter removes atmospheric haze as often seen in scenics. The Skylight removes the bluish tint seen in distant shaded mountains or snow and from photos taken in open shade. Plus either of them protects the front element of your lens. One scratch or acidic smudge or fingerprint and your lens is ruined. If the lens doesn't accept filters the manufacturer probably offers an adaptor. Buy it.

Buy a circular polarizer if you plan on shooting a lot of scenics. The polarizer darkens a blue sky to make white puffy clouds really "pop" and it removes glare/reflections from water, glass, sand, snow and painted metal - but not from polished metal.

If your camera comes with a skinny neck strap you can buy a nice comfortable wide one to replace it. Your camera should either be in your camera bag or hanging around your neck. I shudder when I see people carrying their camera like a loaf of bread. In 36 years I've yet to drop a camera. I have replaced a few neck straps though.

Sooner or later you'll want a tripod. Slik, Velbon, Manfrotto and Bogen come to mind. Make sure the one you choose has a tilt/pan head and a quick release.

canon is the best

I'm partial to the Sony DSC-H2, because I own it, love it. Most shots I do use the manual controls. Besides, you might get a good price for it since it seems it's being phased out.

I haven't used any of them. Still waiting for my H2 to arrive :( My choice would be the Fuji ;) lol
Look in dpreview.com and read the reviews on them to see if they will narrow down your choice to one.