I've had great luck with the Canons. I've had five of them, passing them on to kids, co-workers etc. Most of them record video, as well.
You don't need the highest resolution to take useful pictures. I'm still using an SD110 which has a max resolution of 3.2 mega pixels. You can get older cameras like that used on eBay for less than $100.
One caveat: some cameras use AA batteries, while others use custom internal battery packs with much longer life. But if you don't have access to your charger and a wall outlet, you can't easily recharge the latter. I carry a second battery - which is smaller than two AA cells.
When I was researching them (I also bought my wife a Nikon D50 last year) I used
http://www.dpreview.com/. They have excellent reviews and forums.