Italy

That depends on how much money you have to spend. You can get good point and shoots for very little at Walmart or similar store. I have an Olympus that cost about $150 (plus another $100 for extra battery packs and memory cards). It is a good little camera.

I also have a DSLR - a Canon Rebel that cost $700 (plus $300 in additional lense and filters, and $200 in battery packs and memory cards).

A good camera for around $200.

I have an Olympus Stylus 850 SW. I love it! Accessories are reasonably priced also. The best thing about it is it is fully waterproof so you can go in the pool with it and take it snorkeling or on a boat and not worry. It has all the standard features I need and takes great pics.

i highly recommend the Panasonic TZ series. their long zoom (10x) in a small body makes a great travel camera. the newer models might be out of your price range but look for the older ones. amazon should still carry them. enjoy.

I have a good SLR camera and wanted a small camera for travel. I bought a Canon SD780 and love it. They are tiny, about the size of a credit card. You can get them for $179 at Amazon.com.

there are more than several models in your price range that are quite nice. All of the brands will have models that fit and take good quality photos.

the best suggestion would be to go to somewhere (perhaps Best Buy) that you can touch and feel the actual cameras. See for yourself which ones you like and feel good in your hands.

The Sony cameras will usually require a memory stck for storage, while most of the other brands have sort of standardized on SD cards. SD cards tend to be a bit cheaper for the same amount of storage.

I have been using Canon point and shoints for a while and like them but in reality they are all reasonably equal in your price range.

Recently bought a Panasonic DMC-ZR1, also called a LUMIX. Great optical zoom! Very happy with quality of my shots both indoor and outdoor. On Amazon for about $279, I think. Battery life is incredible, by the way. Highly rated by CNET.com, which I suggest you check for an objective viewpoint of features no matter what camera catches your eye. An independent reviewer might point out some things you wouldn't think of.

The DMC-ZR1 fits in my pocket or purse. Bought a nice neoprene case to protect it. And it comes in colors like red, blue, silver.

OK since Laurel thinks you might get distracted by some flashy colors at the Best Buy ;-) here are a couple of websites:

http://kenrockwell.com/index.htm

Ken is a professional photog that lets you know in no uncertain terms his likes and dislikes. He breaks down his suggestions according to DSLR and pocketable and then by your budget. This is the place you want to go if you are at a point where you actually need someone to say, I've done the research get this one. BUT you still have to touch one somewhere to make sure it works for you.

http://www.dpreview.com/

This is in independent review site dedicated to digital photography. Well respected on the interweb.

This place has reviews on just about everything as well as forums etc.

You should consider a small, folding tripod, too.