I made this same thread a couple of weeks ago when I was looking to buy a camera. In the end I got a Canon IXUS 75, heaps good quality images for such a compact cameraI'm a noob when it comes to cameras but this one is really easy to use. Cost is between $420 and $500 depending on the shop.
I use a Canon Powershot A80, and the macro setting is my friend. You can't get that model anymore, but there are other decent models in the Powershot range. The prices have dropped quite a bit since I got my camera too.
I just bought a Canon IXUS 950 IS for $500
before that I had an IXUS 500 and at work I use an IXUS 750
the IXUS range are excellent, they're a great point n shoot - I love the macro
these pics were taken with the 500 - haven't got any herp pics with the new one yet