Which compact for night life?

[zazak]

I'm working on a website to cover a nightlife scene, and am going to invest in a camera to cover our events and venues. Basically the camera will have two functions:

1) To photograph people in dance clubs, bars, and cafes. Keep in mind there is usually minimal light in some of these atmospheres, so it needs to perform well in low light. More specifically, I want it to A) take flattering pictures of people with a built-in flash (I'm tired of my old, cheap cameras, whose flash-photography make people look absolutely hideous and washed-out), and B) be able to take decent low-light photographs without a flash for instances when it's dimly lit but flash-photography wouldn't be ideal.

2) To photograph venues, both the interior and exterior (restaurants, cafes, and bars). These need to look as professional as possible, as they're going on a professional website.

The ultimate destination of these photographs is for web publication, so raw native resolution is insignificant. If there is no compact digital that is capable of taking professional-looking venue photography, then I can most likely borrow a DSLR for the second function, but would prefer to do it all with one camera that I can always have on me.

Some additional notes:
- BUDGET: $500, but this can stretch up to even $700 if there's an absolute dream model that costs a little bit more.
- ZOOM: Telephoto zoom is insignificant. Wide-angle is capability preferable for club photographs, but not absolutely necessary.
- SIZE: Pocket-size is preferable, but not necessary. I want to be able to have it on me at all times, either in my pocket or my bag, so bigger, bulky cameras are out.

MODELS: I did some research and see that the Panasonic Lumix LX3 is considered to be among the best compact digitals, but then I read it's flash is poor and that it doesn't perform well in low light. Then there's the Fuji F200 EXR, which I believe is supposed to perform very well in low light -- I also read a comment that said it was better than the LX3 for photographing people (whereas the LX3 is best for landscapes). But will it perform for professional-looking venue photographs for web-publication?

There are hundreds of camera models, however, and I'm not sure if I'm overlooking a good choice, so I'm looking for input on any models -- not just between these two. Any input would be much appreciated. Thanks.

[KCook]

My own camera is an older Fuji, so I may be biased. But for a ultracompact I would have full confidence in the F200EXR. Now that is a tiny pocket camera. Since you have permission on the scene (obviously), your patrons may be a lot more impressed (cooperative?) if they saw you with a bigger SLR-like ultrazoom? For that class of camera the choices are not so clear, my first inclination would be Sony's new HX1.

Kelly Cook

[Andy Stanton]

A DSLR will give you much better pictures in low light than any point and shoot camera. Within your price range I'd look at the Canon Rebel XS, the Nikon D60 or the Sony A200. All come with a lens. Also all have much better built-in flashes than any compact camera.