My sister just bought a Kodak easyshare camera, it was about $200 at OfficeMax, and came with a free 128mg memory card.
I'm thinking about upgrading my Olympus c720 to an Olympus c5050 ... that's about a $400 upgrade, so I'm not sure if I'll actually go with the new camera or not. The 5050 has a very nice underwater housing available, which would be nice if I want to actually do some underwater photography, but I'm not sure if I can cost-justify the camera upgrade.
I'd love to be able to afford a digital SLR camera, but I don't see that happening soon, so for the time being, it's just wishful thinking.