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A little over budget but would recommend Olympus C-50 Zoom. 5mp, excellent battery life.
Failing that anything by Olympus or Canon is good. (You can probably pick up a ixus for that money)
Does the budget include money for extra memory cards, a case etc?
Most cameras come with a next to useless sized memory card.
Look out for optical zoom. Digital is next to useless. Also on most compact cameras even the optical zoom isn't too hot.