I just bought a Fuji FinePix A345 for US$179. My main criteria were <US$200, 4 or so megapixels, optical+digital zoom, big LCD screen, easy interface. Too many extras and I just get confused and frustrated!
I don't see any need for more than 4 megapixels, really.
I'm very happy with it so far. It was easy to figure out right out of the box (who needs pesky directions!).
Editing to add: bored at work, so I looked it up on dabs.com £120 incl. VAT.