I use a Canon G9...the G11 is the current model, they both sell for $499 new. 12.1mp for the G9...I think the new G10 went back to 10.1mp for noise reduction because of the small sensor. It is an amazing camera for sure, even shoots HD video. It has a macro setting also, in macro mode with this camera you can actualy set the lens on the item being shot and it will still focus...its awesome. The G7 is the same as my G9 but without video, you can get them pretty cheap now.
With 12.1mp I get huge image sizes because I shoot on the highest quality .jpg setting, I reduce my images to 640x480 while retaining the high quality and getting file sizes of 30k to 70k by using a free program called Picasa from Google....its a 2 second process....open the image then resize and export. It will export to a folder called Picasa Exports so they the reduced images arent mised up with the full size image folder, very fast and very simple.
The Nikon P90 would be a good choice, the Fuji Finepix series, Canon G series...would be great choices for what you need, Fuji being the cheapest of them.
www.bhphotovideo.com Go there and read up on some of the cameras, get some ideas. They have an extensive camera collection and they know their stuff.
Picasa 3.0 ..... open image from your gallery, choose resize...640x480...file...export image to folder...done! It has a really good auto color correction feature along with rotate to straighten, sharpen, B&W and other nice features. But for the basics of resize its super easy and quick...check it out.
Canon G9 macro @ 100% crop..."Cut from full size image without blowing it up"