I have a Canon Ixus 70 and love it. Like you, I want something simple and easy to understand.
It has an optical viewfinder (I think that's what it's called) so that you can look through it and don't have to rely on the screen, particularly in bright sunshine. Lots of others don't have this.
Pictures are really sharp, it's very easy to upload them onto the computer, it's small and easily fits in a handbag or pocket.
I see Jessops are doing a deal at �143. I bought mine via Amazon in February and it was much more expensive; prices are coming down all the time.
Only thing is you should buy a memory card, maybe 2 gig, as the one with it holds practically nothing, and a case - Canon make one especially for it. Don't have a link, but you can start looking now.
Good hunting.