I am looking for a good digital camera to take action shots with. I would like to have a nice compact one in which it could fit in my pocket. Megapixels above 4 would be prefered. My price range is <220.

Personally, I like the Canon S3 IS, but if you want more portability, and in that price range, I would recommend looking at the A540, A550, or A710 IS. There are also some good candidates in Canon's SD- line, though I'm not too familiar with them. They seem to be even smaller, or at least slimmer, than the A- series.

Another vote for the canon powershot series.

My A510 fits reasonably comfortably in my back pocket till I sit down, and in the winter months, in my inside coat pocket. (A510 is basically the same build as the A540.)

I would avoid the Canon A6xx series, as they seem to have an inferior lens (plastic) and build quality to the A5xx and A7xx series.

I would (and am) watch for a deal on this camera, the A570, as it has image stabilization, a reasonably low price, good range of features, and a compact size.
http://www.newegg.com/Product/Product.asp?Item=N82E16830120194