I'd stay away from point-and-shoots as they are flimsy and extremely overpriced.

If you want a compact rangefinder, I'd recommend the Olympus 35 series (RC, RD, DC, SP), the Canonet QL17, or the Ricoh 500G. If you want a compact SLR, I'd recommend the Olympus OM-2. All of the above cameras require manual focusing, but have automatic exposure. You'd also need to add a flash unit for most indoor shooting. If you want something pocket-sized, I'd recommend the Olympus XA series.

Another option is an autofocus SLR such as the Canon EOS series (e.g., Canon EOS Rebel Ti). These are lightweight, affordable, and have a variety of modes from complete automation to full manual control. Most of them also have a built-in flash. The only downside is that they are plasticky and don't have the same "classic charm" to them.