You can pick up a Canon 10D DSLR for around $200, granted that is the body only, but it is a great start. Check Ebay and Craigslist. There is a listing on Craigslist in my area for a used 10D at $150. Then, if she wanted, an 18-55mm lens costs around $100 - 150. So, all total it is not really breaking the bank but you come out way ahead of a point and shoot. Just something to consider.
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Canon 50D: Sigma 10-20mm f/4-5.6 EX DC HSM , Canon EF-S 18-55mm f/3.5-5.6 IS, Photoshop CS5
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