i do alot of underground exploration, so i put a camera through its paces, wet, damp, mud , sand, and still demand quality and size.
olympus mj300
this is great, cards are small, it 3.2mp, and thats fine, check my site link all the pics are taken by it, cards are like a phone sim card, and the battery, which is a small unit that lasts forever! its a lithium and great, its an allround great camera!
and its splash proof! which is a huge help! trust me!
and i think it retails at about £300ish
http://cgi.ebay.co.uk/Olympus-Mju-300-Digital-Camera-3-2-Mega-Pixel-Extras_W0QQitemZ7578035985QQcategoryZ31388QQrdZ1QQcmdZViewItem
thats the one, and seems well cheap now as a 2nd!
http://www.longforgotten.co.uk