Readily available for less than $170 is the Canon PowerShot A2000 IS. Released late in 2008, it's a 10-megapixel camera with a 6x optical zoom and a 3-inch LCD (sorry, no viewfinder).
It's small enough to fit in a jacket pocket or small bag, but because it runs on two AA batteries, it's a little on the heavy side. The A2000 is also not all that exciting to look at or loaded with features.
It's a basic point-and-shoot, so if you're looking to set shutter speed and aperture, you'll need a different camera. The closest it comes is a Program mode giving you control over ISO, white balance, exposure compensation, and color. But if you just want to take a good picture without worrying about settings, that's what the A2000 IS does best.