Canon S100 VS Canon 260is, hard to decide which to get?

I am wanting to get a digital point and shoot for my birthday in February, can't afford a DSL so I am wanting a decent to excellent point and shoot camera with great photo and video quality for a point and shoot.  I have googled both and they both have very good ratings with the S100 above the 260is, I was wandering if anyone has any advise on this subject?, I like that the 260IS has a 20x zoom and was wandering if this camera would take good quality photo's in the zoom range and if this camera would be a good choice even with sacrificing the 2.0 of the S100 which only has a 5x.  Also does JPEG and RAW really make a difference in digital point and shoots.  I know that the picture and video quality compared to DSL is no comparison, and I do understand that the quality is not as good in the point and shoot, just wanted as good of a quality point and shoot as possible.  I do like to shoot close-ups, nature, landscape and family video's....Just want the best bang for the buck.   THANKS