Most beginners can get away with a point and shoot, plain and simple. Most of the guesswork is already factored in to the "creative modes". I would recommend the Canon SD980. This camera has good/decent low light performance (ISO 3200), image stabilization and HD movie mode (720p). Its a great place to start.
I started with the original Canon A10, the first digital powershot made by canon, it was only 1.3mp, and I loved every picture I took. Now when I look back on those pics, I realize that my iPhone takes nicer pictures now, LOL.
If you want to venture into the DSLR world, I would recommend the Canon Xsi, it is the best entry level DSLR they make, nice 3" screen, it has live view (so you dont have to always look through the view finder), it comes with the 18-55 image stabilized lens (which you may find to be somewhat limiting), and I would recommend you get the 55-250 image stabilized lens to compliment the setup. The whole setup would be in the $700's.
I just recommended this to my sister-in-law, and she is in love, at first she was a little nervous about all the settings, but she ended up playing with it for a few weeks and really has it down. She uses it for product photos, yoga classes & stuff for her teaching.
If you really need any info, email me, I have been into photography for about 15 years, and do a considerable amount of side work with it. Good luck with your choice.
