I think that one might be a bad choice, even though the price is pretty nice. Try and get something above 3 megapixels (mp is the deciding factor in image quality).
Go here
http://www.dpreview.com/reviews/compare.asp
Under options select
Format - compact
Price (street) - <US$200
Sensor Photo Detectors - 4 million
Then hit compare. It will provide you with a list of good cameras, along with user reviews, the site's indepth review (which is highly creditable and usually contains sample photos), and anything you need to know about the camera.