In reply to Ramblin dave: Might be pushing your budget but I managed to pick up a new (refurb) Panasonic GX1 (Compact System Camera) on ebay for about £280. I can't recommend it enough. Pictures are fantastic, it's incredibly small and packable for something so fully featured but sturdy enough to not have to worry about it too much.
I got the power zoom lens version which was slightly more expensive but I'm sure if you hunt around you could find a good deal on the regular lens kit version, especially if you can wait until after Christmas.