I need to buy a digital photo camera, any suggestion of what good one price up to 500?

I noticed that every answerer here has only mentioned Sony cameras. I would like to state that even though Sony cameras are generally of good quality, they're not the only good brand in existence. Keep in mind there's Canon, Fujiflim, or heck, Nikon.
You haven't listed any specific things you want in a camera, so I will go ahead and list off some generally good cameras that anyone can like.

Note: IS or VR means optical image stabilization. I don't list resolution because it is irrelevant to good images.

Compact, ho-hum cameras.
Canon SD1000 (3X zoom, no IS) Stylish, metallic body
Canon SD800 IS (4X zoom, IS) Stylish, metallic body
Nikon S500 (3X zoom, VR) Stylish metallic body
Fujiflim F31 fd (3X zoom, no VR) Actual usable ISO 800, good for low-light.
Sony W90 (3X zoom, IS) Metallic body, another ho-hum camera

Superzooms:
Sony H9 (15X so-so quality lens, IS)
Canon S5 IS (12X fair quality lens, IS)

Ultra compact:
Sony T100 (5X zoom, VR)
Nikon S50 (3X zoom, VR)

Hope this helps.

kodaks rock

No, there are cameras for every occasion. I would get a few in mind then look up the reviews, if there is a camera store around you, ask them. Dont go asking Best Buy or places like that...they're just average joe's there trying to make a sale to you.

I beleive that sony camera's are really good and actually kind of cheap. So just go to the page that i have listed and look around they have alot of choices

SOny Cybershot

I bought one of these
my friend liked it so much he had me buy him one too
got mine from comp USA online -free shipping

Shipped 1 Cyber-shot DSC-H2 Digital Camera, 6.0 Megapixels - Sony $259.98

below is a link to one for 269$

sale on sony cybershot at bestbuy.com $289.99 for the camera, battery,picture printer,case, & memory card 1 GB. Compare to $349.99.

I would reccomend a Sony DCR-HC46 digital handycam because it has a good 800X zoom lens that takes great pictures and it is a digital video camera. It uses MINI-DV video cartridges and memory stick duo memory chips. This is an all-around good camera that is affordable and rugged. Small enough to tuck in a pocket and it can be used to take snapshots or to make videos. The memory stick duo allows easy transfer of photos and movies to computers and to photo printers. It also works on fire wire or usb 2.0 to the computer from the included docking station. The camera battery can be charged in the docking station or from the power cord. The batteries are relatively cheap to buy, so one could easily have two or three batteries in their camera bag for that family reunion. The video picture quality is crystal clear and the photographs are 6.0 megapixel.

Panasonic Lumix DMC-TZ3 for smaller size (~$300)or Panasonic Lumix DMC-FZ50 for big compact(~$470)

Even though I currently own this ultracompact digital camera, I would still like to highly recommend the purchase of a Nikon Coolpix L10 for the following reasons:

1. Besides taking well-exposed hi-quality 5 megapixel pictures, it uses a standard set of rechargeable double AA batteries which last a very long time;
2. Has a 3x optical zoom;
3. Has a macro feature which allows closeups within 6 inches;
4. The flash setting for "red-eye" correction is on the navigator wheel and not within a submenu;
5. It's very small and light;
6. Uses inexpensive SD memory cards;
7. The digital video feature takes wonderful "sound" videos which are noise free. It records the piano very well with it's built-in microphone;
8. It comes with a USB 2.0 transfer cable which you connect to your USB computer port;
9. Has tripod mount on bottom of camera;
10. And the price is a mere $99 [sold at Samy's Camera - www.samys.com, and Staples.com.]

Review(s) can be found at www.amazon.com [Query: "Nikon Coolpix L10" along with pictures provided by satisfied purchasers.]

Good luck!