I am looking for a digital camera of small size, about the same size
as a Canon S110. However I need it to be able to place a date stamp on
the photo so that when the image is printed (without special software)
the date stamp will show up. The Kodak line still puts date stamps on
the photos but the cameras are to large. The other requirment I'm
looking for is that the camera come with rechargable batteries.

The new Toshiba PDR-T30 would meet your criteria.  See a review at
http://www.dcresource.com/

Also take a look at the Olympus D series... very compact cameras
reasonably priced have date stamps and rechargable batteries.
These are great for size, they fit in a shirt pocket. They are a
"snapshot" camera, but a good one.
http://www.olympusamerica.com/cpg_section/cpg_digital_dseries.asp

You'll find reviews and a "camera finder" here:
http://www.imaging-resource.com/DIGCAM01.HTM