I've had an Olympus 300 DL for about 3 years now. Ran $899 when I bought it. I've really been happy with it's picture quality (1024x768), it's handiness, and software.
The only thing I didn't like was it's fixed length lens. It is the equivilent of a 35mm lens, on a 35mm camera.
I recently bought another Olympus (yes, I *like* the Olympus system <g>)... 1280x..960? Something like that, anyway. I think it's an Olympus 500. Don't have it with me right now.. but it was $499, I think, it has a 3X zoom, and I'm *really* happy with it.
No cost except batteries, once you have the camera... unless you wanna print a pic. My Epson 850 does a very good job printing, on glossy inkjet "photo quality" paper. Up to 8x10 comes out very good.