amanda, this is absolutely terrible advice, read above - because the guy might some day want to open up his own photo exhibit of his trip. /s
If you like having no low light capabilities, poor optical zoom (if any), poor ISO performance, noisy/grainy pictures, a dead battery if you actually need to make a phone call, etc. etc. etc. then by all means go for a phone with a camera.
From the sounds of things the OP is going on a trip of a lifetime and you're handing out shitty photography advice. Maybe he might like to take nice photos of his trip for his own enjoyment. Photos that could be printed at a large size and framed not for some exhibit, but for his home or whatever.
Lots of good advice here. (I have an iPhone 3GS.) I was considering either a $450 and under camcorder or a $300 and under digital camera. The Canon SD780 IS pics are impressive, esp for the size of the camera. I always travel with one bag only, so compact and light items help. Thanks for posting camera pics. Very helpful.
The 780 is nice but it only goes as low as 33mm. The wider the lens the more creative potential for the camera especially indoors in small spaces and also for huge vistas outdoors (though all the p&s Canons do photo stitching for multi-shot panoramas). It's not a complete deal breaker of course, and a camera like the 780 is going to out perform a phone on every level.
The SD3500 IS I linked to is exactly $300... [ame=http://www.amazon.com/s/ref=nb_ss?url=search-alias%3Dphoto&tag=dpreviewbuybox-20&field-availability=-2&field-keywords=Canon%20PowerShot%20SD3500%20IS]Amazon.com: Canon PowerShot SD3500 IS, Include Out of Stock Camera, Photo & Video[/ame]
The ZS5 looks like it's a bit less... [ame=http://www.amazon.com/s/ref=nb_sb_noss?url=search-alias%3Dphoto&field-keywords=Lumix+ZS5&x=0&y=0]Amazon.com: Lumix ZS5 Camera, Photo & Video[/ame]
The ZS7 looks to be right within your budget too... [ame=http://www.amazon.com/s/ref=nb_sb_noss?url=search-alias%3Dphoto&field-keywords=Lumix+ZS7&x=0&y=0]Amazon.com: Lumix ZS7 Camera, Photo & Video[/ame]
Those are all very versatile cameras. I've owned 3 Canons, 2 p&s and a DSLR, and for the most part couldn't be happier.