Toolfreak,
A good place to look is Circuit City if you have one in your area. I bought a $600 Toshiba PDR-M70 3.3 megapixel camera that does sound and can even create a little movie with for $200, because it was an open box buy. I got the full mfg warranty, but I did have to buy a couple things that didn't come with it so I have about $300 in it. It takes smartmedia, which I also use for a portable MP3 player and have a 128meg, 64meg and 32meg card on the 128meg card I can take as many as 1331 pictures in the lowest mode and 160 in the highest mode.
So take your time and check around there are plenty of great deals and camera's out there.