The Fuji E510 5 megapixel camera for $245 at newegg.com looks very interesting. Of course the camera is not perfect.
"The operation of the optical zoom is smooth and quiet, but not continuous; it moves through its 28-91mm range in 10 distinct steps, adequate for composing most shots."
http://www.steves-digicams.com/2004_reviews/fuji_e510_pg5.html
Another thing I don't like is the use of XD flash cards rather than much cheaper compact flash cards. On the plus side, it uses 2 nimh rechargeable AA batteries(so spares are very inexpensive), and AA alkaline batteries can be used in an emergency(though they probably won't last very long). For under $250 though, it looks very interesting. The 3.2x optical zoom 28-91 mm equivalent, and iso range of 80-400(some of the lower priced cameras don't even have an iso 400 mode). Look at the sample photos from this camera. The 2 inch display is also very nice. Many lower priced digital cameras have only a 1.5 inch display. The sample images from the camera look very nice considering the cameras very low price. The lens is f5.5 on the telephoto end, so the camera isn't great in low light without using a flash or tripod at the telephoto end.
Another option would be to go for a Canon 4 megapixel camera like the A85 in that price range. Do you really need more than 4 megapixels? Four megapixels is enough for a decent 8"x10" print. The A85 uses 4 AA nimh rechargeable batteries and compact flash cards which is nice. The zoom is 35-105 mm equivalent. The lens is f4.8 at the telephoto end, which is a bit better than the Fuji. Both cameras have lenses around f2.8 at the wide angle range. The display on the Canon is only 1.8".
I think I would rather have the Canon 4 megapixel camera than the Fuji 5 megapixel due to the use of
XD cards in the Fuji rather than the much cheaper compact flash cards, and the continuous zoom on the Canon. You probably wouldn't be disappointed with either camera though.