T.V.
I like the Sony Cybershot. I started out with one that was about 5 megapixils and now have upgraded to the 8+. My mom has also has one and we both really like them. If you are looking for something that is quick to start up (this is really important with kids) and takes clear enlargable pics and fits easily in a purse or pocket, IMO, this is it. I bought mine a few months ago at Circuit City for about $300.
It also takes reasonable videos, just make sure you get an upgraded memory card. I have a 2 gig and I've only run out of room over a long vacation. We just did Seaworld last month and the pics I have of Shamu are FABULOUS! It also has a great feature that helps capture kids (and other things) in action, you hold down the shutter button and it takes continuous photos, so you get a stream of photos, like a flip book, it's really cool and adds a lot of fun to a scrapbook page!