I have had a look at the cameras Argos sell and around your price range I would say the Olympus FE130 at �65 fits the bill.
Olympus is a quality camera aker, it is a 5Mp camera (so good quality pictures), 3x optical zoom.
This is the cheapest camera they do with optical zoom.
There are two types of zoom, digital zoom and optical zoom.
Digital zoom is a "fake" zoom which does not really zoom, so you get poor quality pictures when you zoom in.
Optical zoom is "proper" zoom, where the lens actually goes in and out. This means you get just as good a quality if you are fully zoomed in or zoomed out.
Even if you do not buy that camera, do NOT take any notice if it says the camera has digital zoom. Try to get one with optical zoom.
There are some good deals at the moment so look in the daily papers for adverts from Staples, PC world, Comet etc.