In reply to Solaris:
> Like others, I'd recommend a good quality 2nd hand compact that shoots RAW
I'd go for a second hand dSLR and the offer of a Nikon D40 further up this discussion would make an excellent choice.
A couple of years ago I bought a Nikon D40, body only with no lens, off fleabay for £100. I gave it to a mate with a spare kit lens that I had kicking around.
The camera may be 9 years old with old tech inside it compared to cutting-edge dSLRs, with features like only three focus points and limited ISO settings but it still takes cracking images today. Its the end result that is more important than the tool used to create it.
I'd give some thought to the D40 offered and if a good deal can be struck, you will be pleased with the results taken with this camera.
http://www.dpreview.com/reviews/NikonD40
I also own a good quality compact that takes RAW images, which I bought from these forums. The compact is gathering dust somewhere in the house. I either use my dSLR or phone these days.