I love my Olympus C-2100UZ (Ultra Zoom) camera. It's only 2 MegaPixels, but it has a 10x optical zoom (+ 2.7x digital) and offers a lot of manual control in addition to several automatic shooting modes. It's hard to beat that 10x zoom; you wouldn't believe some of the pictures I've gotten. The C-2100 is a little above the price range you mentioned, but if you really hunt, you can find one for $400-$450 (especially on Ebay). Plus, it comes with lots of extras like a wireless remote control (great for group shots!) and rechargable high capacity NiMH batteries with a charger. ($30 value just for the batteries & charger.)
I would tack on a $20 Kodak 49mm UV filter & tethered lens cap package from Wal-Mart to complete the package.
Be advised, however, that this is not a small camera. The 10x zoom lens is image-stabilized (IS, meaning the motion of the lens is mostly isolated from the motion of your hands), and that makes for a larger camera than the C-700, which has the 10x zoom [i]without[/i] IS, making it next to useless for low light zoomed shots.
Have fun!