Dell has a really nice deal on a Sanyo Xacti VPC-X1200 12MP Digital Camera: only $79.99 with free shipping, regular $129.99. You save $50! The camera has 12 MP resolution with 3x optical zoom/5x digital zoom. You get a nice big 2.7" LCD screen to look at. It only comes with 16MB internal memory but it supports SDHC cards up to 16GB.
Some of the additional features it offers are digital anti shake, face and smile detection with red-eye removal. It comes with a rechargeable lithium-ion battery so no need for buying batteries, a charger as well as a pouch and strap. Pretty good set up for a really sweet price.
On sale till the 28th, January 2011.