Thank you for all the suggestions so far!

Will check them out, especially the Fuji.
With the 8.3 megapixel, the 3x optical zoom shouldn't be a huge problem. I think her current Kodak as 2 megapixels and a 3x optical zoom...
There are quite a few in the Canon powershot range that fit the bill, but I'm not sure whether she'd like the hand grip (or whatever it's called) - so will have a look at the Ixus too.
I've not seen any Ricoh's so will have a look for those as well.
Thank you