If you can find the way to swing another $50, the Canon SD900, with 10 meg is highly recommended, and even does video very well.
Very small, titanium case, and extra batteries are 2 for $10 on ebay. I have the camera, recharger, extra memory card and 3 extra batteries in a case 3 inches tall, by 2 inches wide. It goes everywhere with me.
I also have the sd600 with 6 meg, and while it's good the sd900 is outstanding. Have fun.