Is it possible to buy a decent digital camera for around $200 - $250?

Absolutely.

About 4-5 years ago when they were just starting to pick up, you had to spend close to $300 for the camera and accessories to get a decent product.

Nowadays, you can find a good camera for around $150 or less, and many come with free accessory goodies. Check out PCWorld for some reviews:
http://www.pcworld.com

It should be explained to you if you shop in the right place, but just in case, realize that the number of megapixels isn't that important once you get to 4 megapixels. The more you have, the larger the picture you can develop. 3 megapixels, for example, can get you up to 8x10 without losing much quality, though 5x7 is ideal for this number of megapixels. 4 megapixels is more than you'll probably need. The most important specs to look for is "optical" zoom, which is the physical ability of the lens. "Digital" zoom is all hype, as you lose image quality with this feature, so ignore it. PCWorld should have a tutorial of frequently asked questions...

yes go to www.bestbuy.com

yea i kno some ppl on the streets.

Well, it depends on what you think is decent, but I think you can. I got a camera (sony cybershot) for only $150 and I'm totally satisfied with it. The quality is great, I can record video, and I really don't need anything better. I think it's 3 megapixels. Good luck. Buying a digital camera is a decision you'll never regret.

Nikon Coolpix 4600 (4 megapixel) or 5600 (5 megapixel plus video) are both under $200, even including a decent sized memory card (512K to 1 GB). I have many digital cameras and I am never disappointed with the results of my 4600. AND - it uses "AA" batteries instead of expensive special batteries. It's about the size of a pack of cigarettes, too. There are newer cameras that I am not as familiar with in that price range, but since you said "good, small, cheap," this is one (two) I can really recommend from experience.

Here are a few samples. These pics were taken with the Coolpix 4600 with no tricks or gimmicks or filters or anything. They had some "very minor adjustments" in Photoshop. If you bought this camera today, you would be able to go out and snap these pictures yourself.

500KB - http://members.aol.com/swf08302/benfrank...
Supported on a metal fence for about a 3 second exposure

1.7 MB - http://members.aol.com/swf08302/commstho...
Just a grab shot of a particular house

2MB - http://members.aol.com/swf08302/sunset20...
Pretty winter sunset

38KB - http://members.aol.com/swf08302/solstice...
That's Venus up in the sky

buy a sony cybershop it costing around $200-$250
canon -
Olymbus
samsung
nikon
these are the best brands in this world

you can even shoot for a hybrid digital video camera for less than that. Microtek take it mv-500.

yes, wal- mart , sams club has some good stuff.

Nikon Coolpix 5700 has 5 mp, sells for $199.99 and is very easy to use.

Absolutely. and you have a lot of models to chose from.