I am a photographer and I use an SLR camera, which is more complicated with all the bells and whistles. But, for simple point-and-shoot photography, I recommend this model: FUJIFILM FinePix 9.MP Digital Camera. It's less than $100, has 9 mega pixels and is still manages to have some nice bells and whistles of it's own! I love the Finepix series because they are so simple for beginners, yet they maintain excellent image quality! Here's a link...
http://www.bestbuy.com/site/olspage.jsp?skuId=8589299&...
I don't recommend an SLR camera or anything with manual features unless you are a photographer or are wanting to become an amateur photographer. It is not necessary! Really, save your money and get a digital point-and-shoot camera with a high MP # and simple features. In the end you will save yourself a lot of trouble and won't have to deal with those crazy images that looked messed up and not knowing how to set the camera to do what you want it to. SLRs are not worth it unless you are wanting to create images that need specific timings or manual settings.
Oh, also make sure to check the type of batteries and memory card that your camera will need. It is best to find a digital camera that uses rechargable AA batteries. I recommend the ENERGIZER AA NIMH 2500ma RECHRGBLE BATTERY - 4 PK (also try Energizer's compact charger...it is the best!). They are about $20, but well worth the cost when you consider that they last me, a photographer, 4 months per set or better. You may want an to get two sets if you shoot a lot. Make sure you keep up on charging them. I only use Energizer AA NIMH...the higher the number (2500 mAh) the better! Also, do not get a camera with ONLY internal memory. Please get one with some type of memory card! Otherwise you will regret it. There is nothing more frustrating than trying to get important pics only to find that you NEVER have enough space and that there is nothing that you can do about it! I highly recommend getting a camera from FujiFilm or the one I recommended above. They are the best point-and-shoot company in my opinion! They make high quality cameras that are compatible, user friendly, and not too expensive! Best on the market!
Be wary of cameras that offer a high "digital zoom". An analog or "optical" zoom is preferred because "digital zoom" tends to pixelate or blur a picture. If a camera has both, great, but don't purchase a camera based on digital zoom. It's one of those semi-useless features. 10X optical zoom is good.
If you do decide to upgrade to a more professional camera...I recommend FujiFilm, Nikon, or Canon. These are definitely the best brands and you will likely be happy with any of their professional cameras.
Hope this helps!