Digital SLR.
Goto ebay and you can get a Canon Rebel Digital SLR in great condition for about 200-300.
http://cgi.ebay.com/Canon-EOS-Digital-Rebel-Kit-XT-EF-S-18-55mm-/220784170521?pt=Digital_Cameras&hash=item3367c31619#ht_2780wt_1139
Night and day difference from Point and Shoots. Get one and you will never go back.
bump