I seem to have a habit of purchasing previous-year's models whenever I buy a new digital camera.
So far, I've always been able to purchase in the $250 range.
You do have another option... Two years ago, I bought my Panasonic DMC-FZ1...
Yeah, I know... it's only a 2mp camera, but I'm still pretty happy with my results.
(But I'm always checking the various digital photo review web sites to see what the current
prices for newer models are... ya never know when one of those Lumix's are gonna get down
to that $250 range!)

(Well, I can dream!)
With the Panasonic, I've got the 12x optical zoom (I don't bother turning on the digital zoom, of course),
great image stabilization, a kickin' lens that seems to challenge a 4mp camera, spot metering,
4 frames/sec continuous drive mode (comes in
real handy for taking pics at Kellie's Pee-Wee
baseball games/practices), auto-bracketing ability (+/- 1/3, 2/3 or 1) - and much more, as well.
(I can even use it as a P&S if I really want to, too. It's got a totally automatic mode... but I don't
think I've ever used it that way!)
My brother-in-law has a Canon (not 100% sure of the model, but I think it was the S2-IS)...
I played around with it over Christmas and frankly, I didn't really care for the feel of it... but then,
I'm used to my own camera.

We all have our little quirks that way, I guess.
If $300 is definitely your maximum price point, I'd suggest you look around (online or in stores, even)
for any deal you can get on last-year's models. I know not everyone will agree with me, but I've
personally had really good results with doing that.
Here's a shot I took last year with my Lumix... this one particular kid loved to get as much dirt as possible
flying whenever he'd slide in to home plate... yup, I caught it (and his folks loved it when they saw it on
the team DVD we produced as a thank-you for the coaches and parents.)
(Yeah, it's a huge pic... but I was afraid to resize it down and end up losing the dirt spray... sorry!)
Good luck with your search!
Sandy (and Brian, Bonnie & Kellie, too!)
