[M Shartle]

Well with only 300-500 hundred to spend I would look at a good point and shoot with a fixed lens something like these
http://www.bhphotovideo.com/c/search?ci=8612&N=4294538180+4291315846+4294949781

http://www.bhphotovideo.com/c/search?ci=...9782+4294949781

The Mega Pixels you don't need much that just a myth that the more the better as seen here. http://www.kenrockwell.com/tech/mpmyth.htm

I hope this helps