I have a Sony CyberShot DSC-P8, with 3.2 megapixels, and I LOVE it. Its a great camera.

Its well over $200, but we were able to get it for $235 *I think* on sale. The original price at the time was $300. You could possibly get it for a good price during sales. It also makes videos up to 90 minutes with sound which a large enough memory card.