1eStar: If you're willing to stretch to just over $400 then I'd recommend looking at Samsung galaxy s2 plus. Around $410 on pricespy. I just recommended these to a friend and they are in the process of getting currently. They wanted the good camera of the s2.
I'll ask her, but I think $300 is pretty much her ceiling. Thanks for the tip, though, I'd be happy to try to persuade her to upgrade. :)