The camera and tripod will be mainly used for family photo's and amateur photography
A tripod that you actually use is the best tripod of all. I've seen people buy expensive, good tripods, but because they're too heavy to carry and too big and too awkward, they never get used. Just about any tripod is better than no tripod at all, as long as it can support your camera.
I also disagree about tripod height. The most flattering photos of people are when the camera is at the chest height of the subject, sometimes even lower. Eye level usually tends to compress the legs, and is pretty unflattering, especially for shorter subjects and women. I wouldn't recommend bending over for extended periods of time, so use a remote release if you're doing something like landscapes, once you've finished composing the shot. For the family photo, bending over to compose shouldn't be too much of a chore.
I have two tripods–one for easy travel and use, and a second one that is much more sturdy and heavy, but only for those times when I really need the study/heavy tripod. A really large, heavy tripod may be great for landscapes, but it's a real pain for family photos and vacations.
So…here's my suggestions:
1) for the vacations, family group photos, etc. I recommend the Velbon Maxi series, usually under $100 new. I really like the Ultra-LUXi -SF series because it folds to 34.2cm (that's about 13.5"), small enough to easily take as a carry-on on a plane, yet it will hold a digital SLR with a standard zoom lens. The Ultra-MAXi-SF is even smaller at 32.7 cm (12.9"). Extends to 122 cm (4 feet). Both have ball heads. These tripods are perfect for take anywhere travel, especially air travel or hikes.
Here's the link: http://www.velbon-tripod.com/ultra_maxi.htm
2) For a sturdy, heavier tripod, Gitzo is the best and I would also recommend Bogen/Manfrotto. If you're willing to pay a lot more, you can get a carbon-fiber Manfrotto like the 190MF3 plus an appropriate tripod head. If you need something a little smaller, try the 190MF4, which will barely fit into an airplane carry-on.
Manfrotto website: http://www.manfrotto.com/Jahia/site/manfrotto/cache/offonce/pid/1882?livid=68&lsf=68&child=1
Gitzo:
http://www.gitzo.com/jsp/index.jsp
One final thing–don't skimp on the tripod, or you'll just end up buying a more expensive tripod down the road and flushing the money you spent on the first tripod. The only reason I have more than 1 tripod is because I need 1 that's useful and portable and a second one that's not as portable but is sturdier. Neither tripod is inexpensive. Consider what it is you need and want to do, then get the best tripod you can.

something sturdy and will hold at least 10 lbs.
Bogen/Manfrotto made pretty good tripods. I have my eyes on one of them (with heads) that costs about 200 bucks.
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