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Just a few months ago I posted a similar thread. I got several good ideas but eventually I went out on my own research and bought the Fuji Finepix F10 that had just come out. Now it is about $325, which I know is more than you were thinking but it is a GREAT purse cam! It is 6.3 Megapixels which according to dpreview beats most 7+ minicameras. It has great resolution, which you can see in the comparisons that they have. In fact several websites had almost nothing wrong to say about it. I carry it in my small purse all the time.
You can see several pics that I've taken with it in my gallery and in fact my latest LO has it featured in my hand. I have yet to recharge the battery, and I've taken hundreds of pics.
I think it has a "steady shot feature" too, but check out the review to be sure. One of the best things about it is the time from on to shooting, which is FAST. This is a major problem of mini cams. So check out the reviews at dpreview and make your own decision. Good luck and have fun with the new cam!
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