Most of my amazing shots (or at least I like to think so!) were taken using a humble Fuji A900 (£79) which can be purchased almost anywhere. I think you can get hold of it's slightly elder brother, the A800 and A700 for less money. I went for the '900 as it has a 4x optical lens. For a budget camera I think it does a pretty darn good job.
Yes, it does take a pair of AA batteries, hence you will need to invest in a rechargebale battery kit but will save you a lot of money in the long run rather than buy disposable batteries.