I use a DSLR (Canon Rebel XT) and I love it.
As for point and shoot, I LOVED my Panasonic Lumix TZ5. Definitely look into the Lumix series. For a P&S, I find the pictures to be amazing.

It takes better outdoor pics, IMO, than indoor. But it did me GREAT for concerts.
I attached a few pics taken with the Lumix TZ5.