Go for a camera with 12 mpx and HD capability...you wont regrate it. Kodak Easy Share is cheap and and relaible with such capability. Or else you can go with the brand names like Sony, Cannon and Nikon. I personally like the picture quality of Nikon....but if you know basic use of photoshop then which ever you chose it really doesnt matter.

Now a days point and shoot cameras are really not that expensive. I dont think that it would be wise to invest more than $200 over a such camera. Decent camera like Sony Cyber Shot or Nikon Cool Pix will do the trick if you are just looking for the casual photography. If you want a little bit fancy camera and want to impress your friends then go with Olyumpus water proof cameras.You can even shoot inside the water with such camera. If you want to shoot some decent movie clip to upload in the you tube then go for Kodak Easy Share with HD. The choice is yours. These cameras are Under 200.