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The VG-120 Digital Camera (Red) from Olympus is the one digital camera to have if you're only going to have one: it takes beautiful 14MP photos and dazzling 720p HD video with its 5x wide-angle 26-130mm (equivalent) zoom lens. Using the brilliant 3" LCD monitor with 230K dots of resolution, you can compose and view photos, knowing that the dual image stabilization and light sensitivity up to 1600 ISO will chase away those blurry-picture blues.
There are Magic Filters (8 of them) to help you find your inner artist: you can choose Pop Art, Pinhole, Fisheye, Drawing, Soft Focus, Punk, Sparkle, or Watercolor. There are also 25 shooting modes that will give you the optimal settings for almost any common photographic situation. All in a petite body that's less than 4" wide, only 3/4" thick and weighs less than 4.5 oz.