gdgt

I've read and heard that the best camera is the one you have with you. If you're anything like my mum (or me, for that matter), that makes the phone the best camera (in my case, because I just don't carry my Nikon D90 everywhere I go). The iPhone's tap-release simplicity also makes it the easiest to use. The iPhone 4's camera is pretty great, and there are specific applications that give you greater control than the stock camera application.

The science of a "good" photograph is inherently complex. How much to open the camera's eye, how fast to close it once it's opened, thereby controlling the amount of light you let in: these aren't the easiest concepts to grasp and master. I've looked into hobbyist point-n-shoots to give as gifts, and what I've found is that if a camera offers manual control but takes great shots when on auto, the photographer will rarely expend the effort to progress beyond that, making it kind of a waste. Consequently, I would only recommend a point-n-shoot with decent manual control if there's a real interest to learn about all the little bits 'n' bobs; otherwise, I'd say stick with simplicity and convenience, in which case you may not be looking at a dedicated point-n-shoot, after all. For example, Sony's latest Bloggie has been very popular because it's compact, easy to use, and takes great video and stills.

Good luck! I hope your mum has a lot of fun with whatever you decide to get her.

Cannon PowerShot A590, for the money it's awesome.