Not wanting to bulk up my pocket camera with a traditional case, I decided to follow the ipod-cozy trend and sew one up for my Canon PowerShot SD750. I followed Julie Ree's ipod cozy design--the elastic closure is pure genius.
There's really not much to making one of these, though I found it difficult to stitch the opening neatly since the opening is rather small and the batting makes it predictably bulky (if you try this, you will see what I mean!).
If your camera is new, make this project even easier by using the sleeve your camera comes in as a template and just add the seam allowances as indicated (1/4" seams around all 3 sides and 1/2" at opening).