I’ve currently got a cheap Nikon compact camera which seems to take pretty crap photo’s. The colour on them never seems to look right and they’re always blurry as if the camera’s been moving when the picture was taken!
I’ve also got a Nikon DSLR but it’s a bit big to lug about with me when I’m out on the bike.

Can anyone recommend a halfway decent compact camera that doesn’t cost a fortune which is small enough to go in my Camelbak when I’m out on the bike and to carry about when I’m on holiday?

I use an LX3 for that sort of thing. Takes great pictures and offers plenty of user options. Not sure what the latest version is, lx7 maybe, but you can pick up a 3 cheaply.

I have a Ricoh CX3 – it does seem a good camera, with an unusual approach to burst mode that works well with sport.
(I also have a cheap Nikon, and again the colour is rubbish on it)