i just picked up a canon a720is for quite cheap (150 or so), and i think its great. we also have a sony w100 or similar that is good too
the bonus about the canon is that you can do a non-destructive (and reversible) hack on the firmware (just google canon firmware hack) and you can open your camera up to all sorts of advanced features that are heretofore unavailable on the middle-consumer-grade models, (but which the image processing chip on board is capable of doing)
very very cool.