You don't have to go for this exact one, but I highly recommend an old Canon S400. I still have mine that I bought 3 years ago, and it still is in great shape. It is 4.0 megapixels so it is decent if you want to print 4x6 or 5x7 images, and the photo quality is excellent. This camera is what really sparked my interest in photography. Today it is discontinued because there is a newer model out, so you can find these for sale and get a great deal on them.
i work at office max, look in the adds for a cam that comes with free card and a discount on the cam too. I think we had some $250 olympus'* $75'* off with a free card, look for a deal like that. I have a kodak with 10x optical zoom & 4mp. I love it. The newer model of it is like 299 i think.