There are a number of different "proportional representation" style electoral systems.
This
link does a pretty good job of describing many of them.
Electoral reform IS needed. But I believe you can bank on one thing for certain... it won't happen in Canada any time soon. In order to make these changes, it would have to open up the Constitutional debates. The Bloc in Quebec would have nothing to do with this as they have the most to lose. Provincially, the PQ would certainly be totally against it as well.