Does that price range include the price of a memory card? Most cameras still come with a 32MB or 64MB memory card. You really need at least 512MB if you don't want to be swapping out cards all the time.
A couple recommendations: 1 - Canon A590 ~$130 2 - Canon A1000 ~$175 (I include this one even though it's over your budget because you can currently get it with a free 2GB memory card from NewEgg)