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Digital camera dilemma?


I am wanting to purchase a new digital camera. It would primarly be used for taking pictures of family, I am having a baby in January. I am not sure what features I should be looking for? In the past, my main problem with digital cameras has been the flash. When taking pictures close up, the flash would wash out the person. As far as price goes, I would like to spend around 200-300 dollars. (Christmas has me pretty tight on cash) Can anyone recommend a good camera? Thanks!

I have looked at the Pentax Optio M40:
http://www.pentaxwebstore.com/detail/PTX...

And the Optio Z10:
http://www.pentaxwebstore.com/detail/PTX...

If your flash is washing people or things out its because you're shooting more indoors or under low light conditions.. so you might want to look into getting a camera that can be used in those conditions. One tip is to get a camera with some optical (lens) zooming and image stabilization. That way you can stand back and zoom in on the picture you want, but your flash will be back farther and not blow out the scene.
If you're looking for a camera that will give you a lot of manual control, but still easy to use, I love my Canon s3. Its great. If you're looking for something simple, then you might want to check this one out. http://reviews.cnet.com/digital-cameras/... It got good reviews, can be bought for about 300$, and has low shutter lag.

Try the Canon A570 IS, a 7mp camera with 4x zoom and image stabilization, around $150.

Most cameras will have problems with flash, if the person is too close. Generally, you need to have people no closer than 2 to 3 feet and no further than about 8 to 11 feet.

See the tests here:
http://www.dpreview.com/reviews/canona57...

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