Have a look at the range of Olympus cameras. I got one myself a year ago, and it's simplicity itself to use. It's only 1.3 Mp, but it does have a 3x optical zoom which was a big plus for me. You'll probably be able to get something around the 3 Mp range for your budget.
My advice would be to browse a few review sites and then go for a reputable on-line retailer.
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Regards
Mouse
(Occasional crooner and all round friendly Scottish rodent)
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