I've been looking into this too - have decided on the panasonic sz3 which is about £95 everywhere (jessops, amazon, currys, etc)

http://www.panasonic.co.uk/html/en_G...4RbNuRby0Lah90

Reason I've chosen that one is that optical zoom is what makes the difference (digital zoon just invents pixels when you zoom in), and this one has 10x optical which is high for that price bracket. Also has a nice big screen on the back