Hey Staci,

We have a Olympus D-510. I think it takes wonderful pictures & it was $299 (right in your range!). I got it at Staples.
It has zoom & takes short movie clips & has alot of other features. I'd definatly say shop around & find the right one for you. Here's the thread I started before we bought ours, maybe it will help you too. Paul tells alot about them in his post.
Digital Camera's