I have over a dozen Digital cameras ranging from $89 to $800 and the first one that comes to mind for your situation would probably be the Canon SD900 PowerShot.
The new ELPH represents beauty and power in perpetual harmony. With its sinuous perpetual curve design elegantly clad in pure titanium, the PowerShot SD900 ELPH is visually arresting. But what's inside is just as impressive: a powerful 10.0 megapixel CCD, 3x optical zoom and newly developed DIGIC III Image Processor. Top-level functionality puts you at the forefront of digital technology, with expanded low-light shooting capability, a built-in digital tele-converter and futuristic Face Detection technology for incredible group shots. Model: 1267B001
10MP
3x optical zoom
Large 2.5" LCD monitor
DIGIC III Image Processor with Face Detection Technology
ISO 1600