I've been using a Pentax Optio 33WR camera during my last five or six bicycle tours. It's compact, takes great pictures (assuming I point the camera in the right direction), water-resistant and since it's around two years old should be inexpensive.
3X analog zoom as well. I wrote up a bunch of info about it here:
http://www.bicycletouring101.com/Pho...ingACamera.htm
~Jamie N