Try investing a few more bones and get a used Nikon D50, it will cost you close to 500 bones and you wont regret it. If you want a P&S camera, you can get a sony cyber shot for about 300-350.
Here are a few good ones:
http://www.newegg.com/Product/Produc...82E16830111180
http://www.newegg.com/Product/Produc...82E16830120226
http://www.newegg.com/Product/Produc...82E16830113076