How do I find the best Point and Shoot Camera?

If you can go up to $250, you can get the Canon S100 which is a great camera (I own it to complement my DSLR). It's pocketable which is great for trips and it has a much larger sensor than anything in this price range. Ignore the mediocre reviews on Amazon. They had a lens problem early early in production that's no longer an issue.

Also consider something like the Pedco Wrap Case for whatever camera you get. It's a great little case that lets you go from protection to taking shots quickly.