I have a Canon A85 and couldn't be happier with it. For what it's used for, I have no complaints with it being only a 4MP, and have probably taken less than 20 pics in 8 months at full resolution. I recently bought an SLR (film) camera to handle my higher quality photography. A co-worker just bought a Minolta Dimage z5 for around 300.00 with rebates from a local camera shop. I don't know if that fits in the budget or not, but it's quite nice for the price and a good value even at regular street prices near 400.00
