I have had great luck with Olympus cameras. I've been doing film photography (do you call it analog now?) for many years now, and I bought one (the 460Z) just to take pics to email around. But I was amazed by how well it captured all kinds of light conditions, with excellent exposures. The lens is nice and large- something which many makers scrimp on. Its the only camera I've owned that consistently takes amazing pictures that accurately captures the color of sunsets. I've also used the 490Z, and it was just the same. They also have very good battery time.
My camera has been replace by a newer model, the D-510Z. From all the reviews I've read, its a very good camera. 2.1 MP, 3x zoom, etc.. You should be able to find it for around $250.
Anyway, you don't have to take my word for it, check out these review sites, they are really good sites, and know what they are talking abouthttp://www.dcresource.com/reviews/cameraList.php3http://www.steves-digicams.comhttp://www.imaging-resource.com/
And for the 510Zhttp://www.steves-digicams.com/2001_reviews/d510.htmlhttp://www.dcresource.com/reviews/olympus/d510z-review/http://www.imaging-resource.com/PRODS/D510/D51A.HTM