The the Olympus Mju Digital 500 - a weatherproof 5 megapixel digital camera, with a 3x optical zoom lens and a large 2.5" screen:
The Olympus Mju Digital 500 (aka Stylus 500), is available for £229 / $299 - the Mju Digital 500 is a compact weatherproof 5 megapixel digital camera, with a 3x optical zoom lens (equivalent to 35-105mm on a 35mm camera), and a large 2.5" TFT screen. The camera is enclosed in a silver or navy blue metal body. It records unlimited 320 x 240 / 15fps videos with sound. The camera's quite compact with the following size: 99 x 55.5 x 31mm. (without protruding parts), and weighs 165g (without the battery and memory card)



Link: Digicamreview