I bought a Nikon Coolpix 885 not too long ago for $520
Advantages:
3.12 megapixel makes for very detailed images, even when printing on letter paper
camera is smaller than most other 3.12mp cameras
brighter flash than other cameras
doesn't eat batteries like sony
good for newbie users, but has lots of tweakable settings for advanced shutterbugs
Disadvantages:
conventional (manual) lens cap
red colors come out a bit too vivid in some situations
can't fit camera in pocket
Overall, it's an awesome camera. Of course I spent another $110 on a 256meg flash card and $150 on 2 rechargeable batteries and charger...