So it helps to know the background on your situation:
It's not a Pentax but you can get these on the really cheap on ebay or even Craigslist, perhaps.
Canon A610 series:
canon a610 | eBay
And while it's not a SLR or DSLR it is a great little digital with a super reputation:
Amazon.com: Customer Reviews: Canon Powershot A610 5MP Digital Camera with 4x Optical Zoom
It's got a vario-screen, which is something you just don't see on many cams these days. It's also definitely in your price range, with auto, manual mode and several other "fun" modes.
Another thing is it takes 4x AA batts and they last a very long time however flash recharge time can be laggy if you are shooting fast (or trying to).
I love pentax but I have never seen them produce anything quite like the A610 series.
Of course, PentaxSam, you could easily spend a lot of time looking around for that ideal camera.
Good luck and let us know what you land.