The Sony NEX-C3 gives you DSLR-quality images in a compact, easy to use body. The new "Photo Creativity" user interface helps you adjust your images with on-screen tips, 1280 x 720 HD video recording lets you record in high-definition and 3D Sweep Panorama lets you capture life at its most real.
Besides the Sony NEX-C3, the NEX-5N also comes highly recommended. It produces great image quality in a small package, and is easy to use for the casual photographer with its fast and accurate auto-focus. The C3 and 5N are both 16MP cameras, but the 5N shoots full HD 1080/50p/50i video while the C3 shoots at 1280 x 720 for video. The 5N has a slightly faster frame-rate of 3fps compared to the C3's 2.5fps and comes with a touch-screen. At $1199 for the 18-55mm single lens kit, it's only $100 more than the C3's twin lens kit.
Sony's Cyber-shot WX7 is listed as one of their star buys at $369. The 16MP camera shoots up to 5x optical zoom, with a wide-angle of 25mm. There's no discount from its usual price, but Sony is giving away free gifts worth $205.