The Olympus C920 is now available in the UK for £299, having recently had a LARGE price drop - shop around though, as many places will still ask an (unreasonable) price for it.
Whilst it is not anywhere near the leading edge of digital cameras, it is still a superb bit of kit. I've had one for a couple of years and am very pleased with its performance. It stores its pictures in JPG format (which can be opened in just about ANY graphics program....and you get a cut down version of Adobe PhotoDeluxe with it)and picture sizes vary from 640 X 480 to 1280 X 960 pixels. It also has a superb Macro mode where you can take pictures from as close as an inch or so from your subject.........and loads of other features too numerous to mention here.
You would be very hard pressed to find performance like this at THIS price. BirdStrike, if you want any more info then please send me an e-mail and I'll do my best to oblige.