Got the wife a Nikon 3100 DSLR camera with the upgraded lense for Christmas. This will be our fourth digital camera, and the first expensive one. We've been happy with the two Kodaks we have had before.
It seems that anything $150 or less in price these days is at best a camera that will "kind of work" for most situations for a year or two, but after that will start to eat batteries or otherwise show its age.
Anything $200 to $400 will serve you better, with quicker click to picture times and better overall quality.
Finally, cameras in the $400 to $800 range (usually SLRs) will be the kind you want if you need a camera that will last years and give professional results, time after time.
You get what you pay for.
TJR