Oh man, the S2-IS is awesome indeed.
Have you seen the video quality of it also? Canon lauds it as a hybrid digital camera/digital video camera and it definitely doesn't fail to impress. You can download some sample vids off Steve's Digicams website.. and the VGA videos are amazing with stereo sound (on a digital camera!). The Image Stabilizer has also been reviewed as top-notch; working very well amongst competitors such as the Sony DSC-H1. I've got the Canon A510 at the moment, and I used to use it to take screenshots of lecture slides at uni from the back of the lecture theatre.. and I had to use 4x zoom to get it properly. But I REALLY had to keep my hands super still to get any legit pics at even 4x zoom, so I'm so thankful for such an effective stabiliser system @ 12x OZ.
Also thinking about an IXUS 55 as a pocket portable. God I need more monehhhhhhhh!
I'm pretty clueless about SLRs. I heard that the 20D is more of a prosumer SLR.. although Canon does boast it as a good solution for professionals too. Not sure, but I'd sure love one. My step-dad is a massive photography freak.. always has been. He's got so many huge film cameras.. but it's so funny watching him go digital (he has crap computer skills and it was funny watching play around with his new EOS-20). I was also looking at the 350D 'Digital Rebel XT' too.
My god, can't believe I'm discussing tech gadgets in the L&R forum!