Tesco has some digital cameras on offer under £100
http://direct.tesco.com/q/N.1999764/...ResultSort.y=5
The only problem with the cheap ones is that they all seem to have AA or AAA batteries which run out fairly quickly, I've got a Ricoh R5 now with a lithium battery that lasts a lot longer (I think it was about £130 from Jessops.) I used to have HP Photosmart before which was pretty good also.
Snadger I think the one HeyWayne found is brilliant too, bit pricey at £60 though!