If you want to do nature photography, then you'll need a good zoom.
The C770 is an excellent camera and more compact than the competition. The only problem is that it doesn't carry Image Stabilization (IS), which is essential when focusing waaay out there. Without IS, the pics have a high chance of coming out blurry--no matter how steady your hand is. Of ocurse, you can get around this limitation with a tripod, but that just adds more weight to pack.
You can either wait until January for the next gen of Oly IS zooms or get one of the new digicams with IS from Minolta and Panasonic that have universally received raves.
Panny FZ Series
Minolta Dimage Z Series
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Again, you can't go wrong with the Oly 770. IS is your friend though and the current crop of of Pannies and Minoltas should serve you well in your price range. They have zoom digicams with IS right iin the $400 mark.
When you're ready to buy something,
avoid the NYC shops. Get the lowest price from an authorized dealer and price match it by calling the
Onecall Website. They are a class outfit and won't sell you gray market. They are universally known as THE place to buy electronics at great prices. You also will get good service at
B&H, though at higher prices--and they don't price match like Onecall.
FWIW, another zoom for your consideration that just came out and has been getting good reviews (without IS though) is the
Nikon Coolpix 4800.