checkout and browse Digital camera you are looking for on camsaur.us I believe there is some digital SLR camera under $200
SONY digital camera's is the best option for cameras, image quality is good on sony products also price is very affordable
Go to a dedicated local camera store and ask the people there for suggestions (After you tell them your requirements). You don't have to actually buy from there, but you will get plenty of info and get many of your questions answered.
I need to buy also a camcorder for my wife, but i can't decide if what brand but my first choice canon.