Joe
Congrats on choosing one fine camera.
Here is another vote for Nikon's 28-105. As a take-everywhere lens
for the S2, it is just about perfect. Great image quality, fairly compact,
under 1 lb and great value for the price . . . Plus a very nice macro
function which yields extraordinary macro shots. The 28-105 will give
you nice portraits and good landscapes.
Be aware that it is not a "low-light" lens but the S2's high ISO shots
( say at 800 or 1600 ) are very good, and compensate for the fact
that the 28-105 is f/3.5. That f/3.5 is still good when compared with
some other zooms at f/4.5. Lower f/ numbers mean that a lens has
a bigger minimum aperture, thus letting in more light for any given
shot, resulting in more sharpness and clarity in lower light shots.
The 28-105 operates well with the S2 flash, but for best flash results
with the S2 in the future ( when more cash is available

you may
wish to consider an external flash . . .
In your position, this zoom will probably give you better flexibility in
your early days with the S2, compared with a fixed length lens like
the 50mm.
In any other circumstance, I would say buy the less expensive Nikon
50mm f/1.8 for about 60 UKL. This lens would create better portraits
and higher-quality low-light images, but does not have the versatility
of the 28-105 zoom.
Good luck !
keith