The sony 5.3 MP 717 is the best camera that you can get for the money right now thats not an slr, they dont make them any more, but they go for 300-400 on ebay.
They take amazing pics, have full manual focus, aperture, and shudder speed.
It doesnt fit in your pocket though. Keeping one in your pocket almost guarantees certain death though theyre really fragile.. my old sony died because it got sand in it from being in my sisters purse.
heres some pics taken w/ one