Get a used canon. Seriously. Look around on ebay, find a seller with a high rating, and bid away. Kodak and HP make total junk.
Also, you might be able to find a used canon SD10 for around there. They're 4 megapixel, they have no optical zoom, but they take pretty decent pictures.
But ... yeah. Seriously. Getting a junk digital camera is bad news. They don't last as long, they're harder to use, and even if they have a high megapixel sensor, it doesn't mean the lense is good, which is what is responsible for taking good quality pictures. Again, USED canon.