At first I didn't think there was a camera that met your desires.
But one did turn up:
Konica/Minolta DiMAGE X31
Sells for $179 at newegg.com
You can see a review here:
I am looking for a digital camera, I just want to shoot basic pictures, maybe print out max 8 X 10 pics. I am thinking I need a 3.2 megapixel camera but one with less might work. I want it to be small. I also would like good quality. Anybody know of one? I like the size of the sony DSC-T1, but I don't need 5 megapixel and I can't afford it. Thanks.