For your budget, I suggest:
Consumer Reports for November 2006 has ranked the Canon Powershot A620 as the best compact digital camera. It is becoming almost a legend for longevity at the top of various consumer lists. It looks like this model has been replaced by the A630, which I would expect to be just as popular. The A640 appears quite similar and shares the "600" series numbering, so I guess it's just another upgraded version of the now-classic A620. It looks pretty much the same except for baing a 10 MP camera. The continuous drive is a little slower, but the files are larger, so that's no surprise. I own a few Nikon DSLR's and I'd buy the Canon A630 or A640 for myself. It would be EASY to use on "AUTO" mode, but it allows full control once you know how to use it.
With this camera, you will find the memory card is a cute little token of thanks from Canon, but not much more. Buy a 1 GB Sandisk Ultra II or Extreme III card. You will NEED the increased capacity and write speed to fully realize the benefits of your camera.
http://www.dpreview.com/reviews/compare_...