My perspective ... get a simple but good film camera. I'd suggest the Olympus Mju-II ... it has a fixed 35mm f/2.8 lens, meaning that it's very good and shots in low light (eg. nighttime) with flash will more often than not come out properly. Also has spot metering, so that the exposure is calculated correctly. And is also splash-proof (so can get slightly wet without harm, though I wouldn't try dropping it into the pool !)
Best of all, you can get this for perhaps $180 ... and you can spend the rest of your budget on film and printing. Experiment with different print film (ASA 100, 200, 400) to see which ones you like ... I find Fuji give warmer tones so good for shots with people in them.