LTH,
I'm not really the one to give digital camera advice, as I had three successive versions of the same camera. I started with the Canon PowerShot S200 Digital Elf, which lasted over two years, moved on to the PowerShot S400 Digital Elf, which I would still be using if I was not clumsy, and now have a PowerShot S500 Digital Elf.
That said, I will give the same advice given me when I bought my first camera, buy a camera with an optical lens, metal body and is small enough to comfortably fit in your pocket. The metal body is important as people, especially me, are clumsy and metal is less apt to break than plastic.
I dropped my S200 at least 6-7 times and it kept on chugging, finally dying as it lived taking a picture of a Peking Duck. The S400 would still be going strong, but it fell from waist high with the lens extended, right on the lens. If you are going to drop a camera make sure the lens is not extended.
I was also given the advice to take pictures in the highest resolution available to the camera, as you can always decrease, but never increase. To this effect a larger memory card is mandatory. I have a 512mb card for the 5 MegaPixel which allows me to take 198 full size pictures. If I went down in resolution I could take some ungodly number, but 198 is usually enough, even for me.
Speaking of memory cards, I popped for a Ultra II SanDisk card (whatever Ultra II means), as opposed to a standard card. The lag time does seem to be shorter, but I am not 100% sure if it's the newer camera, the card or a combination of the two.
Far as technique goes, mine is a variation of the toss it against the wall and see if it sticks method. I take multiple pictures of everything I shoot and hope for the best. If I take 100 pictures, 6-7 turn out well and, maybe, 1 is really good I'm happy as a clam at high tide.
Someone in the thread mentioned movie mode, the S500 can go up to 3-minutes and, from what little I've used the movie mode, it works quite well. If I was going to buy a non Canon Digital Elf camera I'd most likely go with a Nikon CoolPix 5200. I stick with the Canon, mainly, so I don't have to learn new controls.
I should also point out that for strictly email and web posting a 2-3 MegaPixle camera for less than $200 will be just fine.
Taking pictures is fun and rewarding, especially if you don't have to have each picture developed, at a per picture cost, to see results.
Enjoy,
Gary