Hi Islandgirl, welcome to the forum. My wife uses a Panasonic FZ7 (FZ8 now latest) as a carry-around camera when the 350D is too cumbersome. It's quite small and light and has Leica lens, image stabilisation, and focal length range (35mm equivalent) = 35mm to 430mm. She has had good results and is pleased with it. Try looking at her gallery - check EXIF to see what camera. Her user name is Demoiselle.
Other members may be able to advise on other makes/models.
Best of luck - it's never an easy decision.
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