check out the canon s2-is. its slightly above your price range but will make a world of difference ($299 but i see them on sale all of the time). i worked for canon for 3-4 years if you have specific questions about cameras let me know.

here is an informative thread (the s2 replaced the s1 and is a MUCH better model)

http://www.maast.org/index.php?name=...pic&t=8785