Straight Talk recommends Olympus EVOLT E-510 (with 14-42mm and 40-150mm Lenses) as Best Easy Digital Camera for Travel, Children, Action, and Low Light Photos Under $750.

Yes, it is a DSLR. But there is no need to be intimidated as it also has an Auto Mode :-). You can always use it as a typical point-and-shoot camera with its kit lens mounted and in Auto Mode or a Scene Mode. The only relevant difference is that for DSLRs composing a shot is done using the optical viewfinder. The rear LCD is used for preview/playback and for changing camera settings (e.g. brightness, contrast, ISO, etc.) only and not for composing the shot (as is the case with point-and-shoot cameras). The optical viewfinder is also easier when framing in dim light (e.g. indoors).

DSLRs have a real advantage in image quality as they have much larger sensors (about 10-15 times the size) than prosumer cameras like the Panasonic FZ18. So each pixel is larger and therefore more sensitive to light. This translates into much lower noise at high ISO settings and better dynamic range (range of light-levels between darkest and brightest areas in a scene). So you will have less blown out areas in high contrast scenes.

The Nikon D40 has a 6.1 megapixel resolution sensor. Its first kit lens has 3x zoom (equivalent to 27-82.5 mm on a 35mm camera) and second one has 3.6x zoom (equivalent to 82.5-300mm on a 35mm camera). It has an auto-focus assist lamp (useful for focusing in low light when indoors). It also has full manual control options (e.g. aperture priority, shutter priority, raw mode, etc.). It has an Auto (Flash Off) mode (auto-boosting the ISO to take blur-free picture without flash). It runs on a proprietary battery that delivers approximately 470 shots/charge. It is one of the smallest DSLRs in the market.

Note - DSLRs presently don’t have a movie mode.

The latest superzoom from Panasonic, this camera packs class leading 18x zoom lens and 8.1 megapixel resolution sensor in a compact body. It has an Intelligent ISO Mode (auto-boosting the ISO to freeze action) and full manual control options (e.g. Aperture Priority, Shutter Priority, Raw Mode, etc.) for additional versatility. The camera has an Image Stabilization feature to help avoid blurry pictures because of camera shake. The life of the proprietary batteries is approximately 400 shots/charge.

This super zoom is the top-of-the-line camera from Sony. The camera has 8.1 megapixel resolution and 15x zoom lens (equivalent to 31-465mm on a 35mm camera). It also supports full manual modes (e.g. Aperture Priority, Shutter Priority, etc.). Sony quotes a battery (proprietary) life of 280 shots per change.

The Olympus E-510 has a 10 megapixel resolution sensor. Its first kit lens has 3x zoom (equivalent to 28-84mm on a 35mm camera) and its second kit lens has 3.7x zoom (equivalent to 80-300mm on a 35mm camera). Therefore both help cover about 10.7x of zoom range (equivalent to 28-300mm on a 35mm camera) combined. It has a Digital Image Stabilization mode (auto-boosting the ISO to take blur-free picture without flash). It also has a dust reduction feature to help clean dust off of the sensor that may have entered when the lenses were changed. This DSLR has sensor-shift image-stabilization feature in camera body. It also supports live-view (facilitating framing of shot through rear LCD) which is helpful in composing the shot when the camera is mounted on tripod.