Casio Exilim 10.1 MP Digital Camera with 3x Optical Zoom $69

The Exilim EX-Z29 features 10 million pixels to maximize clarity; combined with the 3x optical zoom, detailed moments are captured the way you envisioned. In addition, the wide 2.7-inch LCD delivers amazingly high contrast and brightness and, with YouTube capture mode, you can record and upload your videos instantly.

I can personally vouch for this camera.  I have one and I bought one for a couple of my daughters. They are GREAT cameras and very lightweight!