If you want old school goodness, get the Nikon CoolPix 990, excellent well built cameras. Only available used for about $100. No floppies though,
afaik the only cameras that used floppies were the Sony Mavicas.
$300 today will get you a great camera that puts that Mavica to shame. Canon Elphs are great P&S. Nikon makes great entry level SLRs like the D40, or you could pick up a nice Nikon D50 for cheap used.
I would go to a camera store to get educated, not Fry's. Also check out some review sites like DPreview.com