I bought a Gemini key chain digital camera at Frys for $20. Even though the resolution is pretty low (352 x 288), it works out as a easy-on-the-go camera. Sized the palm of a hand, it comes with a CD (software/webcam/driver) and a USB cable. Runs on a standard AAA battery. Has a in-built memory upto 2MB; can hold upto 20 good resolution snaps. After the limit is reached, the pictures have to be downloaded to a PC and cleared up. No flash, but pictures come out okay in bright light.
It is a CIF resolution camera. New term I learnt with the purchase. Here is a picture I took from my office window on the fourth floor. It is the actual size.
Makes a good gift idea!