Recommend me a good work digicam

This is the message I posted in a camera forum. Maybe some CPFers have some good suggestions.

"Boss authorized me to spend approximately up to $500 for a work camera. Main use will be taking pictures of electronics subassemblies, printed circuit boards and stuff like that. Will sometimes have to get real close to an electronic component so good macro is a must. In another department, a girl uses a Panasonic Z20. I thought the 12x zoom was way overkill for the intended job but when I tried, I absolutely loved the IS. I was handhelding shots at 1/15 seconds, something I could never imagine doing. This was a big bonus because I didn't have to use the flash which blows out the highlights in macro or near macro shots of printed circuit boards. The negative side of the camera was that I thought it only had so-so macro ability and it is a fairly big camera. Engineers may sometimes have to take the camera on field trips and I think it is a bit cumbersome to throw in a briefcase. But as mentioned, I loved the IS which has me thinking towards an S2 strictly for that reason even though like the Pany, the megazoom is way overkill. I am going to go to an electronics store and try to hold one to see if I can get away with the size. I think it will be smaller then the Z20 but small enough I'm not sure. One question I have, is the IS system in the S2 just as effective as the IS system in the Panasonic Z20? From the specs, it seems like the S2 has a very good macro and the flip LCD is a plus as well. I wish both cameras would give me a bit more wide angle. If I think the S2 is too big, I'm also considering the new A610 or 620. I looked at the Panasonic FX9 which is physically much smaller but it has very little manual controls, no shutter or aperture priorities. I sure wish more cameras had IS except for the superzooms. Am I missing any here?
Anyhow any thoughts or alternative suggestions will be appreciated."

I have routinely shot equipment for about 5+ years on digitals of all kinds, including PCBs (computer motherboards) and so on.. now I shoot for fun, but occasionally still do this kind of thing.

My random thoughts:

IS is absolutely worth it. The Powershot S2's IS is effective, up to three stops - as good as you can ask for from contemporary technology. The S2 inherits its IS from Canon's 10+ year heritage and the bigger SLR lenses. Panasonic's IS is pretty darn good as well, as the poster has discovered firsthand. I saw the Z30 today, nice camera.

I always had blown out highlights until I switched to my Canon 350D SLR. The difference between the SLRs and normal cameras is that they have E-TTL2, which automatically fires a preflash, meters the amount of returning light and then automatically determines the correct power level for the main flash. It's the most amazing thing I have ever used, it's 100% auto (the beauty is in the automation) and the problem just disappeared. Taking pics of lights is now truly enjoyable.

Wide angle - something that the point and shoots aren't that great for. I have never seen a point and shoot wider than 28mm (equivalent) focal length. I am not, however, recommending an SLR due to the sheer size of the cameras and lenses. Though, if you wish to carry an SLR, the flash and the dedicated wide-angle/macro lenses will truly make your day. Get the EF-S 60mm macro.. I have seen pictures of Luxeon 3 phosphor-coated dies that will truly make you drool.

Sizewise, the 350D is almost the same size as the FZ30, but that's comparing one of the bigger.. or even biggest point and shoots that I've seen to one of the smallest SLRs on the market, so it is unfair. And it is out of the price range.

The small Panasonics (FX series) are the ones you'd want with IS, but I'm surprised to hear about the lack of manual control.

How does a Olympus Camedia C-60 Zoom look to you? 4cm macro. $499 RRP, $284.90 street price.

Quoting from Imaging Resources

Closeups: Average performance in normal macro mode, but very good results in Super mode. Flash throttles down quite well also. The C-60 performed about average in the macro category with its normal macro setting, capturing a minimum area of 4.43 x 3.32 inches (113 x 84 millimeters). However, in Super Macro mode, the minimum area was a tiny 1.68 x 1.26 inches (43 x 32 millimeters). Resolution was very high, and fine detail was strong in the dollar bill, coins, and brooch (though the details were soft in the coins and brooch in the Super Macro mode, from the limited depth of field and closer shooting range). There was some softness in all four corners of the frame, but strongest on the left side. (This is a common failing of digicam macro modes, caused by curvature of field in the optics.) The C-60's flash throttled down well for the macro area in normal mode (the shooting distance is too close for the flash to be used in Super mode), though the brooch catches a reflection. All in all, the C-60 is a really excellent macro performer!

Depends on how much image quality you want.

Of course if you are a photographer, you can manage and make do with any reasonable camera, but if you got money to spend, I second the Canon series too. Maybe because I am a Canon fan.