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DPReview (which is pretty much the #1 high-end camera site on the web) liked the Casio EX-FH100 and Samsung HZ35W cameras for this category. The Samsung doesn't really look like it ever caught on (not listed a lot of places and above your price range), but the Casio is pretty widely available and runs about $240.
If you're looking for something cheaper, this Fuji was noted as a decent value option at ~$150.
if you want something compact, there isn't much that beats the Canon S90/S95. They retail for a bit higher, around $400, but you can pick up a refurbished unit for a bit cheaper. The S90 is currnetly $280 from Canon, but prices on refurb units will dip every so often.
I bought one for about $250 a few months ago, and have no regrets. It's no SLR, but for something that slips easily in and out of a jeans pocket, it takes great photos, and has a wide aperture and high ISO to work well even in low light conditions.
I've heard some bad things about quality control with Casio. Or at least, my friend has one which is now unusable because the "camera stabilizer is unavailable," and when I researched the problem for her I found like a bajillion camera forum threads with people who own Casios with the exact same issue and there was nothing anybody could do about it but send it back to Casio.
But her camera is a couple of years old, so maybe this has been sorted out.
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If you're looking for something cheaper, this Fuji was noted as a decent value option at ~$150.
I bought one for about $250 a few months ago, and have no regrets. It's no SLR, but for something that slips easily in and out of a jeans pocket, it takes great photos, and has a wide aperture and high ISO to work well even in low light conditions.
http://shop.usa.canon.com/webapp/wcs/stores/servlet/product_10051_10051_262361_-1
Nikon's and Casio are good choices are well.
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But her camera is a couple of years old, so maybe this has been sorted out.