The Sony CD Mavica's are great! They are larger than a standard digital camera, but burn the photos directly to a mini-CD that can hold *hundreds* of photos. A coupla benefits I have seen since using this system:
1. Permanent record of photos...don't have to worry about HDD crashing and losing everything.
2. Cheap! About .10 a disc rather than expensive memory sticks/cards that are expensive and only hold a fraction of the pics.
3. Easier to import. Just drop the disc...no longer waiting for USB transfer or card reader...much quicker this way.
4. Good lens. Carl Zeiss lens.
I have the CD-400 (4 megapixel) which is out of that price range, but there are models with less resolution that might fit.
Good luck.