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Panasonic Lumix DMC-LZ2
The Panasonic Lumix DMC-LZ2 features a 6x zoom, image stabilizer and 5-megapixel resolution, all for about $204.
Pentax Optio S6
The Pentax Optio S6--billed as small enough to fit in an Altoids tin--includes a 2.5-inch screen and 6 megapixels of resolution. It costs about $282.
Sony Cyber-shot DSC-W5
The Sony Cyber-shot DSC-W5 offers 5.1-megapixel effective resolution and a 2.5-inch screen, with just over 400 shots per battery charge. It sells for about $260.