Cameras that use a cable for uploading use battery power I believe. Docking is the way to go.

My Canon came with a cable to hook to the computer, but I never use it.
Instead, I just use a card reader to transfer pics quickly. My computer at work has built in card readers and a cheap portable reader plugs into my home computers. Needing to use a dedicated "dock" just sounds like another way for the manufacturers to sell you additional dedicated equipment (kind of like the whole "dedicated" battery scam or Sony's dedicated memory "sticks").

I was told that card readers are better for the data transfer. I guess some data is lost through the lines. Not sure it is true but this comes from a pro.

Late to the thread, but FWIW we have a Canon SD400 and S500 here (similar specs, one SD-based and one CF-based) and they have been great for what they "are" - pocket-sized, easy, good-looking, point-and-shoot gadgets. Keep in mind that the smaller you go form-factor wise, the more limited the optics will be. The electronics in the Canons and Nikons are awesome and similar between models/sizes, but the little suckers are just not ideal for low-light work or zoom range. I found these limitations quite frustrating on our trip to Kauai last week. Some shots are handled fabulously but others just can't be pulled-off. However one thing I love about the SD400 is that it is FAST (startup and file write-speed) compared to my last couple digicams, and it is truly pocket-sized.

Definitely plan for a larger card and possibly a spare battery for whatever you get.

Ther Casio Exlim line is hard to beat for build quality and picture quality.

My wife was looking at pics from her D-50 next to my Exlim and you cannot tell them apart. Casio has made a pocket camera that rivals full blown cameras like the Rebal and D-50.

You will love it. FWIW when I was on vacation I took over 300 pictures with our Exlim and never had to charge the battery for a week. I have a 1 gig memory card and it holds more pictures that I can take. I have not run out of room on it yet.

Let us know how you like it.

Ebay has battery chargers (gets around the dock unit charging problem) for the Exilim range and non Casio batteries for really low prices. Just ordered mine.