I just bought the Fujifilm 3650 (2.1 mega pixel). It was $199 at Ritz camera and came with a "gift set". A pair of binoculars and a 35 mm camera. It also came with a $10 rebate. So $189 total....
So far I'm very pleased with the camera. But then again....I don't know much about them. All the reviews I found indicated it was a decent entry level camera. I'm amazed at the quality and depth of some of the pictures. It's also pretty tough too. I ran over it with my Pathfinder

and the damn thing still works...could'nt believe it!
It comes with the new xD memory card. Very small, uses less power, writes and downloads from the card quickly, and will last pretty much forever (bunch of sales propaganda). On the downside, there's not much support out there for this type of media...yet.
If I had to do it over again, I'd probably would have bought a 3 meg camera that can record sound with the video. And I also wouldn't have run over the camera with my car.