The Sony P73 is well suited to the task and price range you specified.
Also the Nikon 3200 if you want something just under $200.
Currently in the market for a digital camera. Thought this would be a great place to start. Camera will mainly be used for pictures of family and holiday's, look and shoot. Willing to spend around $300 if that will suffice. Camera should be compatible with Window XP to send photos to relatives.