Samsung S1065 - Camera 10.2MP, 5x Optical Zoom (possibly less £) Argos clearance on eBay - HotUKDeals
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I got an extra 10% off too, with an eBay voucher attached to my account - you may be able to do this too, I'm not sure who gets these vouchers, it might be everyone, or it might be active users.

-- Camera Details --
Body material: Aluminium.
10.2m pixels.
5 x optical zoom.
2.7in LCD screen.
Digital anti blur.
Face detection - 9 faces.
SD memory card compatible.
17Mb internal memory.
Movie capture with sound.
Maximum ISO range: 1600.
13 scene modes.
Pictbridge compatible.
Accessories included in box - strap, USB cables, Manual, Software.
2 x AA batteries supplied.
Weight 160g.
Size (H)6.3, (W)9.8, (D)2.5cm.

Brand new camera, sold to you by Argos, with 12 months warranty - they clear out stock on eBay with discounted prices. **They have it refurb as well for £45.98** -

EDIT: I hope I am not breaking HUKD rules. Am I allowed to advertise eBay deals - this one is by a proper retailer, at a fixed price, and has more than 1 quantity. Sorry if I am breaking a rule.
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NEW = £51.98 inc delivery, and possibly 10% off with eBay code if you have one.
Refurbished = £45.98 inc delivery

I think its a pretty good deal seeing as it has 5x optical zoom, its a known brand, has all the usual features, aluminium body and it has 10MP (not that MP numbers mean much in budgets compacts). Runs on AA's which is good - you can pick up any AA's, or buy rechargeables that way..
The last Samsung camera i had batteries used to last about five minutes.And they were rechargeable expensive ones.

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