Anything from the Canon PowerShot series is good. I used to have one which I passed on to my mom when I got my DSLR, but I have taken it on trips and other places where I didn't want to lug the SLR around and it takes wonderful pictures and allows you to shoot in manual if you want.
Mom to DD#1 December '06, DD#2 Feb '09 and DS March '12
Sony CyberShot. It has various settings, and I use all of them. I especially like the ?kids and pets? setting, which has a very quick shutter speed so you don?t get the blur you usually get with kids who won?t sit still. You can also set it to take 3 consecutive pictures so you have a better chance of getting your shot. And for still shots with good lighting, the digital macro setting gives you a little more depth. I still want a DSLR, but I?m making do with the SCS for now.
My babies!!
Patrick Aydin, 9.24.07, and Alia Noor, 6.1.11
Canon Powershot Digital Elph (lots of levels there to fit your price range). I upgraded from that to a Canon G-10 and LOVE it. It's a P&S that still has manual settings if you want. It's bigger than the elphs, but still can fit in the diaper bag. The picture quality is amazing.
Re: Recommend your point and shoot camera.
this. ours is like 6 years old and it still works great. We've gotten a dslr since then...but still use the Sony quite a bit.