Hi, I've had the S230 Digital elph for about three weeks now. It cost $399, so just outside your budget, but for that you get 3.2 MP and 3x digital zoom (2x optical zoom). It's an excellent camera, and right now, Amazon are giving away a free 32MB compact flash card, too. I bought an adapter to put the Compact Flash card straight into the PC card slot of my Powerbook, and it's SIMPLE.
The previous model, the S200, is a lot cheaper, and just about the same size, for 2 MP and a similar zoom. that could be the answer to all your problems. Personally, you can't go wrong with the Canon Elphs, they do what you need to do, and if you are using it for a website, then they are just great.