Check out Canon Powershot A610 or A620 (they are both the same except the resolution: A610 having 5 MP and A620 having 7 MP). Tilt & swivel LCD. Good battery life and they use AA NiMH rechargable batteries. Manual exposure mode. Macro mode down to about 1 cm. For their features and performance, IMO these models are one of the more bang for your buck cameras that are available on the market right now. Their prices should have gone down further now. I think they are around $400 now.
If you don't need the tilt & swivel LCD or the ability to use manual exposure mode, you might want to look into the Canon IXUS series. The new IXUS (sorry, I forgot the model number) even has a built-in IS (Image Stabilization). The IXUS series cameras are usually smaller, but more expensive.