For the Canon option i would get either the Powershot G10 of G11. Not sure about your budget but they do have some of the DSLR features which is a good added bonus.
I'm not sure if the TZ8 is worth the extra compared to the TZ7
So that could save you some money unless you have a reason for needing the TZ8 (I think it was more megapixels and different memory cards but that's about it)
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