Canon PowerShot SD630
Since my camera got stolen yesterday, it was top-priority that I got myself a new one today. Luckily, Arequipa is one of those cities that has a great black market (although it's not as good as some), where you can get yourself a brand-new digicam for quite a bit less than ye 'ol RRP. The Canon PowerShot SD630 (called the "IXUS 65" in Europe, Australia / NZ, and elsewhere) is a great 6MP, 3x optical zoom camera, with a beautiful big bright screen, and great photo-taking abilities: so far, seems to be working great, and seems to be a big step up from my stolen baby.
If you happen to be in Arequipa, and you need to find yourself a new digital camera, then jump in a taxi, and ask them to take you to "Mercado Avelino". Although some of the vendors in this place look a bit suss, most of them seem to be reputable enough: the cameras aren't ridiculously underpriced, and by and large, they seem to be new and undamaged. Got mine for USD$250 ($280 with 2GB memory card + reader, and camera case) — battery, charger, USB cable, and instruction manuals included — and it's selling in the boutiques in the centre of town for $350. And as far as I can tell, it's never been owned before, and it's taking me some great pics. I'm one satisfied customer: and I'm once again a traveller who has his most important possession!