Jinkster,
As you are finding, you'll get as many different opinions as there are Ppruners, so I may as well add mine, as I think I'm probably closer to the "just tell me a camera that bloody works and never mind all the techo stuff" category than some others here.
I bought a Fuji FinePix A202, which is only 2MP, and I've had some photos printed out at the second lowest resolution, and unless you scrutinize your photos with a magnifying glass you would be hard pressed to tell the difference with a normal SLR print.
I'm being realistic here, in that if you were a professional or wanted to take photos to submit to a magazine you wouldn't be looking for a camera in the price range you mentioned.
When my daughter wanted a camera I asked for advice in
this thread and got some splendid advice on places to shop which you may find useful.
I finished up buying her the same camera, and I think it cost just over 100GBP, and about 150GBP including a 64Mb memory card, which you will need, and a set of rechargeable batteries and a charger, which is almost an essential. I ended up buying it from Jessops, and my daughter is rapt in it.
For what you seem to want I recommend it strongly as value for money.