Steve’s Digicams has a review of the suprisingly good entry level Sony Cyber-Shot DSC-S700. He also says the price is right, and goes on to report-

“Image quality is pleasing for an entry-level 7-megapixel model. Outdoors, the majority of our images were sharp, well exposed, and showed good color saturation. When viewing an image at 100%, you can see some traces of image noise, even at ISO 100. However, these are average amounts and it is unlikely you will see this in your prints.
…
I was pleased with Sony’s new entry-level model. It offers good image quality, performance, plenty of exposure modes, a durable all-metal body, and a great price at US$180 or less. The only negative things I found with the camera were the ridiculously slow flash recharge time, poorly placed (plastic) tripod socket, and the below average Movie mode resolution.”

Sony Cybershot S700 7.2MP Digital Camera with 3x Optical Zoom

The Sony Cyber-shot DSC-S700 is an entry-level model featuring 7.2-megapixels of resolution and a Sony 3x optical zoom lens. The camera fits comfortably in your hand and has a large, 2.4-inch TFT LCD screen for easy viewing and image sharing.