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I have the Canon SD800 IS and I looooooove it. It's a 28mm wide angle lens and believe me, once you go wide angle, you won't ever want to go back. I think the 870 you're looking at is the upgrade to the 800 one that I have.
It's seriously a great camera. The wide angle thing is just really sweet, but more than that the colors that come out of the camera are really extraordinary. I did comparison test shots with p&s cameras that were twice as expensive and the SD800 consistently came out with cleaner, crisper, and more colorful shots. And it's pretty fast. And it's cute and small. And the video capabilities are really good as well.
All the photos I posted of my Mexico trip on my LJ were taken with the SD800 IS.

Pretty, no?
If you're looking at the upgraded version, I'd definitely go with that.
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