We purchased a Nikon Coolpix 5200 in September - we paid just over £300 (by the time you add in case and memory card), but that was only about £30 more than the older model 4200. The main difference is the megapixels - I recommend looking at some in shops to see what feels comfortable in your hand. Ones with rechargeable batteries rather than ordinary batteries are more compact.
It does take a bit of getting used to, as the focussing and firing can be a bit slow compared with a conventional camera, but the results are great. I would also think about getting one of those little printers for downloading - I do have some 6x4 photo paper but it can go a bit skewed in my ordinary printer. You can also e-mail pictures to Kodak (or similar) and get prints back.
But definitely a good buy!!
