http://www.dpreview.com/

Hi Tom
There is so many compact cameras on the market, that it would be impossible to recomend
any specific one. I would choose Canon (great camera and easy to operate software) but other camera makers like Sony, Panasonic Lumix. Nikon as an example making very good cameras too.
My advice would be - please look at 'dpreview' side check the latest models and futures.  I'm quite sure you'll find one for your wife.
aleks