I am using Canon IXUS 175 16 megapixel 1/2.3 -inch CCD sensor based and 8X optical zoom lens camera since more than 5 years, it is best compact camera, the IXUS 175 also provides 28-224mm focal range and movie recording approx 720p.
Its very handy and pixel quality is great, cost is also under budget and specification is also too good as well as image stabilization. I preferred to purchase this camera for adults, if you are going for outing, you can click images digitally extend to equivalent of 16x .
Additionally it has good battery backup, memory card based for saving huge amount of data with USB support.