We have had good luck with Kodak's DC120. You can get storage cards for storing more images.
Battery life is decent, with an option for rechargeables.
It zooms, has autofocus, Macro capability, manual exposure option, LCD Display, etc. The good news is that they have come out with other cameras since the DC120, so its price has come down. The newer cameras have not received as positive reviews as the DC120 tho'.