Student going to Denmark for a semester, looking for a travel camera
My daughter recently returned from a semester in Denmark through DIS. (You're going to love it.) Our budget was a little higher, so we bought her a Canon T3 and two kit lenses. I think the whole thing with batteries, memory card and a case came to about $750. Overall she was very happy with it, and she regularly posted wonderful images. But it was a large and relatively heavy camera to lug around and if she could have done anything differently she would have preferred something smaller. You'll be wanting to travel as light as possible, since I'm sure you'll be visiting many other places in Europe. Portablility and even pocketability are the key here.
Within your budget, I would probably look at some of the high-end compacts such as the Olympus XZ-1, Canon S100 or similar that have better lenses and more user control features than most compacts. DP Review posted a comparison of several of these here:
You can also look up individual reviews of these on this site.
If you want, I can send you a link to my daughter's blog, with write-ups and pics of her experiences in Copenhagen last semester. Have a great time!
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