I'm totally overwhelmed by the wide range of choices out there and just
need some advice now.

I'm looking for a digital camera with:

1. At least 8x optical zoom
2. At least 5 megapixels
3. "Relatively" compact

I'm used to a Canon PowerShot S110 on the digital side and really like
its portability. My film camera is a Canon Rebel XS (about 10 years old
or so).

Image quality is important - I'd give up some of the compactness for a
good quality image. I'm unlikely to do prints greater than 8x10.

Any thoughts?

Thanks!