The decency of the photos aren't only determined by which camera you buy, but also by the photographer.
Within the last 2 weeks, I sprung for a $269 (a little over your budget, but its a really awesome camera) Sony Cybershot DSC-H3. 10x zoom and the 8.1 mega pixels is what roped me in. I was looking for a camera that could take clear, sharp and high color photos, that would print larger prints without reducing its quality. I found it and I have been addicted to it ever since.
Hope this helped.
