Well, I have a suggestion that is quite far away from 800$.
I bought a Mustek MDC-800 digital camera and it's great.
It costed me about 200$ and has plenty of cool functions. You can even record videos with it.
The quality of the picture is quite ok, 1024x760.
I think it's a good buy.
I just got a Canon S10 (2.1 megapixels) that supports 3 different image sizes (1600x1200, 1280x1024, 800x600). It's big brother, the Canon S20, has 3.3.MP and a top image size of 2048x1536. From what I've read, that kind of CCD resolution (the 3.3) is mostly just useful if you want to make 8x10" or larger prints.
I have had an S-10 for about 6 months now and am very pleased - first and foremost because it travels well. It fits in my pocket and the automatic built in lens cover is a real plus. Canon make a smaller one, but the S-10 is small enough. In addition I carry an extra rechargable battery and an extra compact flash card - that gives me about 70 pictures at standard resolution. That covers me for a day, but I would be more comfortable with another 32 meg card. (I have an 8 and a 32 now)I download to my Notebook HDD and then burn to CD when I accumulate about 600 meg of photos. The extra cost of the charger with one battery plus a spare - about US$150 - was well worth it in my view - even though it boosted the camera price to US$700. The charger takes 100-240 V ac which was important to me because of the travel. The batterys are suppoedly memory free and so far they seem just fine. It is a good system that works well in practice on the road. The only problem with mine is the ac adaptor seems to leak current into the caera...the camera tingles and vibrates when I use the adaptor, which replaces the battery. The biggest single limitation is the 2:1 optical zoom. The neatest feature is the panorama feature which though not perfect allows shots that would be difficult or impossible otherwise. I don't print out photos much but mostly e-mail them to friends and family and fool around with them in Photoshop so the newer 3 megapixes cameras are not that interesting to me.
I have the Nikon 990 and it is great for photos in the 4X6 range printed on an inkjet printer. The 8X10's leave a bit to be desired but we are dealing with digital format and although I don't agree that film is better, it is just different! It's kind of like comparing apples and oranges when you compare film to digital. I personally like the digital better than the film for ease of use and if you mess up a shot, a little fix-up in Photoshop is all it takes to make you happy!
I also have had the Canon S10 for about half a year now, and it is just awesome. I was super lucky and found it online for a steal at $350. You definately need to buy a large CF card, though, because the 8MB that comes with it is quite inadequate. And you do need to purchase the rechargeable battery kit which costs around $100. But the image quality from the Canon is amazing...no wash-out, and no yucky yellow coloring on indoor photos that you see with other cameras.