Farmhouse, I doubt you will get more than 2X optical zoom in this price range. Regarding storage media, I think it depends upon where and how you anticipate using your camera. If taking it on a family vacation, you will need plenty of storage space as you won't be able to transfer any images until you get home. So, several flash cards, memory sticks, etc. would be nice. Or, what I have done is get cameras that can use the IBM Micro Drive. These little hard drives can store oodles of photos. In my wifes home camera, I have a 360MB Micro Drive (which I am not sure they make anymore) and it will store about about 180 fairly high resolution pics (it is in a 3 megapixel Canon G1). At work, I have a 1GB Micro Drive and I can store tons of pics on it before transferring to the computer.
Let me add one comment about where you buy your camera. If you shop on the internet, you will run across lots of places that that advertise very cheap prices on cameras. Many of these places have a reputation of not delivering the product or pressuring you to buy lots of over-priced accessories. Sometimes they sell grey-market goods. As previously mentioned, B&H Photo is a professionally-run company that enjoys a very good reputation. They are not the cheapest place to buy, but in my experience, their merchandise is priced fairly. In the electronics mail order world, one must be especially careful with whom they do business.
Its been awhile since I have shopped for cameras, so I am not up to speed on current models. Therefore, I can't comment of a good value camera in your price range. Good luck.