You should take a look at the Panasonic FZ10. This is a 4mp camera with a 12x zoom (36X digital). It takes great pics and zooms right in there. There is also a new FZ20 (5mp), but it may be ~$150 more than what yo want to pay.
I know you lose quality with digital, but I don't think this camera is too bad (it is a Leica lens).
These two pics were at 36X for the horned lark and 30X for the ground squirrel.
Obviously this not a very good pic, but I lasered the sheep at 276 yards. This picture was taken off-hand.
Same sheep at 70 yards at 36x zoom.
12x
36x
I guess it is all about what you want in a camera. I love the camera and really like it's durability. It is in my hunting pack everytime I hit the mountains.
Best of luck finding the camera that suits you best.