The 2" LCD will certainly eliminate a lot of cameras.
You are out of luck wanting a camera with Smart Media.
It is a dead horse. I don't know of any camera made in 2004 that uses Smart Media.
2" LCD (or larger) , 4-6 megapixels, under $500
Here is a list of cameras:
If you are a Fujifilm fan, you should look long and hard at the E550.
Link to a review of the E550:
My Fujifilm Finepix 2600 2 megapixel camera keeps freezing up and I think I'm ready to get more pixels. I want to spend under $500, so I'm looking for 4-6 megapixels. It's hard to find a good camera with at least a 2" lcd. I also wanted to stick with Smart Media memory cards since I already have them from my Finepix. Any suggestions?