Unless you are willing to pony up more money then all the photos indoors will either be grainy, blurry, both, or harsh flash would make the photo look unappealing. We would all love a pocket camera with a good focal range and works well indoors for under $250, but that time has not come.

The best out there right now appears to be the Fuji F200EXR, but that's past your budget by at least $110 online.