Point & shoot with good movie mode

[pinkoos]

His budget is about $300 tops. Compact is preferable since it's more likely that they will use it if it's something my sister-in-law can just throw in her purse when she takes their girls out, etc.

Zoom is not so important. I guess the standard 3x zoom would be fine, though if he ends up getting a bit higher zoom, than image stabilization would be a must.

Thanks.