advice

So, the unfortunate has happened and my trusty digicam has bit the bucket. Technically, I can still take pictures with it, but none of the buttons actually do anything anymore, so I am forced to just be happy with the default settings. Clearly, this will not do.

So I need recommendations on what I should purchase as its replacement. I'm going to buy something this month, so no advice to wait for the new year... The list of things that are important to me is relatively short, but here they are anyways in rank order:

1. SIZE: I am primarily a spontaneous photographer, and the last thing I want is something that requires effort/planning to carry along.

2. PRICE: I'd like to keep this under the $300 mark if possible.

3. PICTURE QUALITY: I've heard a little about the Image Stabilization stuff some cameras have... Sounds pretty useful, but I don't know how well it works, anyone that has tried it - please chime in!

4. MEMORY TYPE: It would be really nice if it used compact flash so that I could just use my current memory card, but that's not a huge requirement.

Other than that, I don't think I have many specifications. I'm not looking for something ultra-professional, I hardly used all the features on the one I had - the Canon Powershot S410. Speaking of which, if anyone has any advice on how to just fix my current camera, that would be very useful as well.

Okay, I know most of you have lots of experience and opinions with cameras, please help! :)