Here's a good website to check out. I like the way this guy thinks, no bullsh!t.
http://www.kenrockwell.com/tech/recommended-cameras.htm
Be honest about what you are going to use the camera for. I'm guessing neither you or your wife are professional photographers, so don't go out and buy a pro camera thinking that it's going to take better pictures, you'll wind up with an expensive camera that you never even use because it is too big and has too much gear to lug around. The point and shoot advice people are giving you is solid, some of them also have pretty bad-*** macro capabilities.