ibchen,
I use the G2 (seems like it never needs recharging), but I got my mom the S40 for her birthday, and she loves it. As best I can tell, it offers the same great picture quality as my G2, except with a compact size that will fit in her purse and/or jacket pocket. Built quality and design is outstanding.
On her old digital camera, she'd get fingerprints on the lense, so the built-in lens cover definitely works for her. It is also able to autofocus and snap pictures much faster than her old digital camera (so it has more the feel of a traditional camera).
It's compatible with the latest 1.1.1 version of iPhoto.
