I'm sure you'll get a lot of recommendations, but there are 2 that most closely fit my needs. The Petzl Tikka XP and Princeton Tec EOS. Both use 1 watt Luxeon bulbs, run on 3 AAA batteries and weigh less than 5 oz.
You can find the Tikka XP for just under $50, and the EOS is available for less than $30. The Tikka XP has a diffuser lens you slide over the normal lens which makes a great area light around camp. Tikka also has a LED battery life indicator.
The EOS has a regulator to keep the light at optimum intensity for as long as possible. It doesn't have a diffuser lens, but you can easily make one by placing a piece of scotch tape over the lens.
Both will run fine on NiMh rechargeable batteries. I'd recommend buying the new Eveready 850 mah AAA batteries. Most NiMh AAA batteries are only 700 mah.