I think my Dad has one (I'll have to double-check the model number), and he likes it. It comes with rechargable batteries, but it doesn't take regular ol AA rechargables. You can take a decent amount of pictures between charges, but you won't go a full day on a single set of batteries if you take a ton of pictures.
Overall, he has very little complaints about it. I tried it in the store and didn't like the interface, but that's just a personal preference. I haven't had a chance to use his camera on a full-time basis yet, although I really need to (just to see how his camera behaves, and to help him out too)
I purchased the Canon Powershot S2, and I love it. At the time, it was more expensive than the Kodak by 50-100 dollars, but that may not be the case any more.
The Canon takes AA batteries, and one set of batteries will last an extremely long time. I use 2500 mAh batteries, and I can usually fill a 1GB memory card ( ~400 pics) on a single charge when the lcd screen and fulltime AF are disabled. The camera takes some of the best pictures I've ever seen out of the box, and it's flexible enough for a photography nut like myself to have fun (ISO 50-400, shutter goes up to 12x optical, ultra macro mode). The interface is extremely easy to use, and you can make changes on a dime. It also has a bonus button that can be used to change one of several different things. I personally have mine set to change the ISO setting.
The Canon also has an extremely quick startup time. You can turn on the camera and be ready to take a picture in a second. When you turn the camera on, it will even pop off the lens cover for you too (if it's still on). Which brings me to the camera's biggest flaw: The lens cap has a tendency to fall off. It doesn't take much effort to take the cap off.
I've owned several digital cameras in my lifetime (including the mighty Olympus 2100UZ), and the Canon is easily my favorite one.
A little while ago, a magazine / online publication (forgot when or who) ranked the cameras in this class, and the Canon and Kodak were the top two choices (in that order). You really won't go wrong with either one.
The bottom line: Do a little research, and read reviews online. There are a couple extremely high quality digital camera review sites out there. Once you have a feel for what the pros think, go to a store and try them out for yourself. Reviews or specs may say that a camera is easy to use, but it still may not meet your expectations. On one camera, the interface may require you to take 5 steps to change something you value, but it may only require 1 or 2 on another. Unfortunately, there are a ton of factors involved in this process...
