"User-friendly" is kind of hard to judge. There are features that make a camera easier to use -- like a tilt-out LCD on the back. There are other elements to consider: do you have any other electronic devices that use Sony's Memory Stick storage technology? If you do, you may find it more "user-friendly" to find a camera that uses the same technology (Compact Flash, Secure Digital, etc.) so you're not investing in technology you won't use elsewhere. What kind of battery does the camera take? IMHO, it's more user-friendly to use AA or AAA cells which you can find anywhere instead of buying a proprietary battery that only the manufacturer will sell you.

I know that kind of confuses things, but if you think about the features on the cameras you've handled that you really liked, some user-friendly features will become more obvious to you.

All that said, though I now own a digital SLR (Olympus), I had a Canon PowerShot that I rather liked. It took surprisingly good pictures for a P&S and I tended to leave it on Auto, which was good enough even for some shots of fireworks (!). It was relatively easy to use, and had plenty of features I did not use -- nor did they get in the way. Canon sells several models for the price you're willing to pay; I'd look at a couple more.

We have a Panasonic Lumix DMC-FZ7K and Love it! Functions like an SLR with lots of full automatic modes and manual if you're into that. Around $350.00 about anywhere.

Sure I liked the Canon but not the prices, and the Sony but not the memory.

The FZ7 has VERY good optical and digital zoom capabilities, easy to use, and has a video function that has worked very well for us.

Take a look at this link - shop around. I'm sure you will find a better price.

Good luck.

Here is a link that might be useful: DMC-FZ7K

My advice- particularly for the first time buyer/user - stay away from the internet stores.
Much better to go to a camera store where you can handle your purchase and recieve some service. Of course like auto dealers, some camera stores may not be any good- selecting a good store will take some time..
Good luck