I'd recommend the Fujifilm Fine Pix E550 for Around $320. Check out what this has: Features: 6.3 Effective MegaPixels Super CCD HR (Improved Image Processing System) Fujinon 4X Optical Zoom (32-130mm) 6.3X Digital Zoom 2.0" LCD Monitor (154K Pixels) Ultra Fast Startup Fast Startup and Frame to Frame Digital Movie With Sound (VGA / 30 fps) Advanced Exposure Controls (Programmed, A, S, M, Continuous) New Metal Body Design for 2004 USB 1.1 & 2.0 Compatible (1.5-12Mbps) Video-Out Lower Power Consumption (Rechargeable NiMH AA batteries x 2); charger includedOptional Picture Cradle (CP-FXA10) Optional Lens Adapters (Wide / Tele) For a complete description, visit: - http://www.fujifilm.co.uk/presscentre/news/index.php?id=1199 It's the best I've come across for that price and I've been researching since the last 2 days. A 512MB xD may be a bit expensive, otherwise this camera is just ideal.