The Fuji Finepix WP range is pretty good. I got this one for my wife: http://www.c2uoffice.co.uk/product_info.php?cPath=379&products_id=157263 and it takes good shots underwater, up mountains, at parties etc., and is cheap enough that she doesn't really worry about it.

Minor configuration options (such as landscape, party, night-time, sport etc if you want to use them) but she keeps it on auto with auto-fill on the flash and it's pretty good all round.