Could you clarify? Saying you want a 35mm camera makes me think you want a film camera, but I want to be sure as it is rare to get questions on film anymore. I will assume that you want film until you say otherwise.
As for the focus thing, the more expensive and complicated cameras actually do a better job at autofocus than the basic p&s models. They also offer auto exposure all the way up to about the pro level models. In case you do not understand about the exposure, I will give a little explaination. The exposure is the combination of how big the hole to let light in is (aperture), how long that opening stays open (shutter speed), and how sensitive the film or digital sensor is (ISO). If you are not comfortable setting these things, it is best to let the camera pick it for you while you are learning and then start slowly experimenting with the settings. For film, you are tied to a certain ISO for the entire roll of film, so planning ahead can be necessary. The stores sell film of different ISO values (typically 100-800 in most stores). The higher numbers mean that it is more sensitive so it will take less light to properly expose the shot. Most modern film cameras know how to tell what kind of film was put in and will expose accordingly.
If you are looking for digital, then you might want to look at the "bridge" level cameras as they fit many people's needs as long as they are not too big for your taste. These are the ones that typically say that they have 10-15X optical zoom. The current Canon models are the S2 and S3. The current Sony models are the H5, H7, and H9 but the H2 can still be found I believe. There are many other brands that offer these, but those seem to be the most popular. You could also look at the Fujis in this category as they typically have better image sensors, but do lack image stabilization like some other brands have. That feature is helpful when taking a shot at a long telephoto focal length or in low light with stationary subjects.
Kevin
If you thinking digital for the still camera, a lot of people here like the S3 IS from Canon and there is talk of it being below $300 at some places on sale.
