I generally find that my suggestions run counter to nearly the entire rest of the world, but for what it may be worth...
I did a long and exhaustive search for a suitable digital point-and-shoot pocket-sized camera which had, to the extent possible, the following characteristics:
1) Shirt-pocket sized.
2) Manual controls.
3) Very sharp lens.
4) Integrated optical viewfinder.
5) No zoom.
6) AA-sized batteries.
7) SD memory card.
I found only the Kodak C530 that fit most of those characteristics, but it did not have manual controls. However, I bought one and I like it very much. It now resides permanently in my vehicle, ready for use if required. I take it out and test it every so often.
I decided to also try again a year or so later. I found that the Canon A-series cameras tend towards that realm - as do the G-series, but they are too expensive for me. The A530, the A540, and if I had to pick one now, it would be the A570IS for bang-for-the-buck.
However, I have a soft spot in my head for Kodak, and so I bought a C663, which I got refurbed from Kodak on eBay for $50. It is very much like a Canon A-series digicam, and the 663 (not the nearly identical 633) has a Schneider-Krueznach lens - very nice and yes, you can tell the difference. Plus, I like Kodak 'color' more on the digital than I do Canon - it reminds me of Kodachrome. I tend to shoot it in B&W mode, though.
Both the C530 and the C663 (which has zoom, unlike the C530) make reasonable photos. Both are reasonably well-made and seem durable. Both can be used in fully automatic mode, and the manual modes wtih the C663 is not too difficult to access (but is not as easy as the Canon A-series are supposed to be).
Hope that helps.
