Neil
The problem with point and click cameras is the poor quality lenses - after the GWW staff photographer came over to photograph some of my work for an article, I couldn't believe the difference between what his camera produced and what my point and click produced. I chatted with him and then got myself a cheap digital SLR - not in his league, but still stunning photos
I have a Sony Alpha digital SLR and it is awesome. Wins best on test in mags and I knew a couple of people who owned them before I bought mine. After trying all they had in a couple of photography shops, it was clearly no contest.
A little more than your budget at around £500, but the anti-shake and auto settings make it a point and click camera if you want, and a 10Mpixel professional quality camera when the need arises.
I got the 18-200 lens rather that he 18-70. Costs a little bit more, but worth the money.
Also, the battery lasts for around 700 photos which is pretty awesome too
Got mine from Jessops in Leicester and they cut a nice deal
First time I used it was in Bradgate park and here is a piccy from it (auto setting and taken the day I bought it (december 2007))
NOTE the picture is 10MPixel straight form the camera and 4MB
click here