A Canon Elan 7e with a 28-70mm can be found for that money. As can a Nikon N90s.
Both very good quality.
The N90s and Elan 7e very much have a semi-pro build quality.
If you have any sort of interest in Digital photography then you might enjoy the G series of cameras. The G6 can be found...
It is likely that you need to clean the lens or filter.
Or perhaps your camera has developed a light leak.
Camera light leaks tend to cause red and/or green areas in images.