I get asked this question a lot. What are the best little cameras? I have to admit that I have hardly a clue. When it comes to camera purchases for myself, I lean towards the purchace of big, black cameras that have the word Canon on the front. They are the ones that feel like family in my hands. HOWEVER. I have learned over the years that great photos have far less to do with the camera model than with the model of person behind it. The most important upgrade you can make on photography will almost always be upgrading your own knowledge base. A 80$ evening class will almost definately do you far better than a 80$ peice of equipment.
That being said, I found this NYT 300$ camera round up video of new consumer cameras by the New York Times last week. I hope it might help if you are in the market for a new camera.
Here is a Comparison Chart
One thing I would like to mention is that hardly anyone actually uses those gimiky features. Lean towards a good zoom and faster response time. The faster your camera responds to you when you hit the shutter button, the happier people will look on the other side of the lens and the less frustrated you will be with the photos.
Other than that just keep taking photos and try to slow down so you learn from the process!