Yup I agree a GREAT starter camera (well starting into photography) is a Canon XTi - years worth of beautiful pictures but it is big and bulky (not NEARLY as bad as my Nikon D90...but mine is more high tech...) It usually runs you anywhere from $300-500 depending on what deals you get....AMAZING pictures....
But if a point n shoot is what your looking for...I do suggest a nikon coolpix. Currently the leading point n shoot with a 12.0 MP (Dude...my Nikon D90 is 12.4!!) You can get them at target for around $125. It has a semi high ISO (how fast you can take picture after picture) of 1600. This is pretty good seeing as most point n shoots go anywhere from 600-1000. With an SD card and case your looking at about $200.
Nikon Coolpix 12.0MP Digital Camera - Red (L22) : Target