Just some thoughts from a photographer:

1- Don't get more mega-pixels just because your can. 6 or even 4mp will do fine up to 8x10. Unless you plan to make huge prints, you don't need high resolution. And if you do plan to make large prints, you will care more about the quality of the image produced than megapixel count.

2- Make sure the zoom is optical! A 10x zoom may sound great, but if its a digital zoom you may as well not use it and re-size the images later on your computer. Read the fine print.

3- Don't worry to much about the lens specs. The tiny sensors in P&S cameras are the limiting factor, any lens that isn't complete crap will do.

4- Read review/opinion sites, and look up the specific camera model you are considering. Don't assume that all "brand X" cameras are good. With few exceptions, camera makers do not make their own sensors, so the Widget 1001 and Widget 1002 models may have different sensors from different companies, and produce completely different image quality.

5- Try to get an optical viewfinder. The delay, poor resolution, and poor contrast of focus on an LCD or digital viewfinder may cause you frustration some day.

6- Finally, handle the camera and try it out. It may be affordable and produce great images, but do you really want it if you absolutely hate the control layout?

I can't recommend specific models, though, I don't really keep up with the P&S market.