If you can afford something a little bit higher than Dr M's recommendation, try the Fuji S1500, currently on Amazon.co.uk for £120 GBP. This has 12 x optical zoom and 10 MP picture, which seems to be a fairly unbeatable combination in that price range.
Another tip I always give (remember I'm no photo expert though, simply learned from reading about it over the years) is not to get too worked up or fooled by megapixel figures.
You see so many now that have 10mp, 12mp and more.
Lens quality is more important than no. of megapixels. Stick with a decent brand of camera with lesser mp than a cheaper brand with massive numbers.
If you are only ever going to print out photos of 6x4 or 7x5 (like majority of people) then 4mp is plenty usually. It should still suffice up to 10x8.
You really only need 12mp if you are going to blow a photo up to the size of your living room mat !!
If you stick with branded lens like Carl Zeiss, Leica or Nikon then you should be ok.
Avoid likes of Vivitar like the plague (speak from experience here!)
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