Which compact for night life?

[zazak]

I'm working on a website to cover a nightlife scene, and am going to invest in a camera to cover our events and venues. Basically the camera will have two functions:

1) To photograph people in dance clubs, bars, and cafes. Keep in mind there is usually minimal light in some of these atmospheres, so it needs to perform well in low light. More specifically, I want it to A) take flattering pictures of people with a built-in flash (I'm tired of my old, cheap cameras, whose flash-photography make people look absolutely hideous and washed-out), and B) be able to take decent low-light photographs without a flash for instances when it's dimly lit but flash-photography wouldn't be ideal.

2) To photograph venues, both the interior and exterior (restaurants, cafes, and bars). These need to look as professional as possible, as they're going on a professional website.

The ultimate destination of these photographs is for web publication, so raw native resolution is insignificant. If there is no compact digital that is capable of taking professional-looking venue photography, then I can most likely borrow a DSLR for the second function, but would prefer to do it all with one camera that I can always have on me.

Some additional notes:
- BUDGET: $500, but this can stretch up to even $700 if there's an absolute dream model that costs a little bit more.
- ZOOM: Telephoto zoom is insignificant. Wide-angle is capability preferable for club photographs, but not absolutely necessary.
- SIZE: Pocket-size is preferable, but not necessary. I want to be able to have it on me at all times, either in my pocket or my bag, so bigger, bulky cameras are out.

MODELS: I did some research and see that the Panasonic Lumix LX3 is considered to be among the best compact digitals, but then I read it's flash is poor and that it doesn't perform well in low light. Then there's the Fuji F200 EXR, which I believe is supposed to perform very well in low light -- I also read a comment that said it was better than the LX3 for photographing people (whereas the LX3 is best for landscapes). But will it perform for professional-looking venue photographs for web-publication?

There are hundreds of camera models, however, and I'm not sure if I'm overlooking a good choice, so I'm looking for input on any models -- not just between these two. Any input would be much appreciated. Thanks.

[SmartWombat]

IMO you won't get flattering photos with a built in flash. That little pinpoint of flash light is probably the least flattering you can get.
I would look at a compact that has en external flash connector, so you can put on a flash with a big softbox, or at least get the flash off the camera so you can change the lighting to suit your subject.

You have two things going against each other, you want good interior and exterior shots - presumably daylight or well lit. I suppose you want high resolution for that?
But you also want good night shots which means really a DSLR.

Though pocket cameras have been getting better and better, they still can't touch the low light quality of a DSLR. The problem is deciding how good is good enough for your purpose.

[nanoka]

Because one of your requirements is nice shots in low light situation, your camera must be at least entry-level DSLR camera. The cheapest but excellent one is Nikon D40. It may cost you around $430 or £280. The remaining budget can be used for extra lens or a flash unit.