Thanks John! Looks like the D70 with a 18-70 zoom is around $1000 now. The G9 is half that. A D40 kit is about the same, $550. Can't put a DSLR in your pocket.
Edit: Took a while to find it. This would be very cool indeed. It's called "tethered shooting".
CAMERA SHOOTING SOFTWARE:
Allow you to connect the camera to your computers IEEE1394 (firewire) interface and do the following:
Set the camera's photography settings and take pictures from the computer.
Select the desired image size and file format, and save photographed images as files.
Check photographed images in a window on your computer before saving them as files.
Use your computer's hard disk as a storage media for the camera.
Supported Cameras: S2Pro, S20Pro, S3Pro.
http://www.fujifilm.ca/x5359.xml
S5Pro is the latest at ~$1700
S2Pro on Ebay for $750 buy it now price
Software explained here, scroll down half way:
http://www.dpreview.com/reviews/FujiS2Pro/page13.asp