I would recommend this site for good reviews of digital cameras:

http://www.dpreview.com/

There are so many to choose from and the technology is changing so rapidly it is hard to choose. I shoot with a Canon S330. I chose this one for its size and made some compromises in both the cost and capabilities.

I am currently looking at a Canon G5 but this outside of the price range you specified.

This site can occupy many hours of your time, but it is definately worth the read for any of the models you are considering.