So if somebody would still want to respond, if you don't mind maybe provide either good P&Ss of any brand and suggested DSLR Nikons that would be good or models to avoid.
For someone who is serious about photography, the following P&S cameras are what I would consider:
* Canon S90 (very compact for what it is capable). Here's a thread from a member (JeremyZ):
http://www.thephotoforum.com/forum/...14-canon-powershot-s90-photographers-p-s.html
* Canon G11 (the G-Series for years has been the bar from which high end P&S cameras were measured against. Older G9, G10 are also good) Search around.. there are several threads regarding the G-series camera. If when in doubt, I always recommend this camera when someone is looking for a high-end P&S camera. Its a bit bigger in size if that matters.
* Panasonic LX3 (Fast wide-angle, better than the competition optics. Excellent IQ but a bit short on focal range). This was my P&S drug of choice. Its an excellent street shooter for its wide fast optics. Here's a thread that I put some thoughts (I just realized I never wrote a thread with a review on this camera... oh well):
http://www.thephotoforum.com/forum/...views/182429-point-shoot-raw.html#post1741685
note: the LX3 is due to be replaced with a newer model soon.
* Finally the Nikon P6000. Unfortunately, this camera didn't appeal to me too much but does qualify as a high end P&S. You should check it out and decide for yourself.
What all these cameras have in common are advanced modes that you would commonly find in DSLRs; aperture & shutter priorities and exposure compensation with ability to shoot in RAW. The LX3 is a complete blast to have fun with.... probably one of the most enjoyable cameras I've purchased in a long time.
Now if you step it up a bit, there are the mirror-less so called "EVIL" (Electronic Viewfinder Interchangeable Lens) cameras. More importantly, they are equipped with a larger sensor which is more capable than the high-end P&S. They squeeze a lot of quality and features into a small body and small lenses. They are becoming extremely popular in Europe and Asia (Japan) and just now really taking off here in the US (bigger is better mentality). There are currently dominated by the Panasonic Lumix G1, GH1, G2, G10 etc.. and the Olympus Pen Cameras (E-P1, E-P2, and E-PL1). Samsung NX10 and the newest arrival Sony NEX 5 are also players in this space. These cameras are also popular for those that like to adapt older manual focus lenses. My EVIL camera of choice was the Olympus E-PL1.
From there, you are now going into the entry level DSLR cameras. As mentioned, sticking to NIkon will allow you to share the camera purchased. I am totally in agreement (even though I prefer Canon). The recommendation for the D40 is an excellent choice for its light weight body.