You may want to look at last years models, which become much cheaper as the new models are introduced. You should be able to get a good name-brand model with decent resolution.
One you may want to place on your short list is the
Canon SD800 IS. This is a small, pocketable cameras which were recently replaced by new models, and can be had for under $300. It has nice specs - 7.1 MP and a wide angle lense (28-105mm) that is great for group pictures.