Of course, you'll want a camera that creates 'nice' noise at high ISO speeds.
While noise reduction software is useful, it lowers the details of your photos ,giving them a somewhat softer, more plasticy feel. I personally like that softer look....but many people don't.
Unfortunately, most digital camera manufacturers uphold the belief that sharper is better. Which of course is a load of doo doo.
If you really want a Canon camera and don't want to try the Fuji I advised you, I'm not gonna try and stop you..Admittedly, while the Fuji is equipped w. high ISO speeds, the noise created at those higher settings often convert your photos to an impressionistic like painting.
I would still recommend it though if your friend likes smaller prints.
If your friend really wants a Canon..then i'd recommend waiting untill May to get the S3 IS.
Canon promises less noise and the option for ISO 800! 400 ISO would no doubt be useable w. larger prints! ^^
If a money is an option, however, (GAH! :P) then I'd just recommend getting any one of Canon non-superzoom Powershot cameras along w. a tripod.