Kodak is good yeah but that particular one takes normal AA batteries, trust me you don't want one that isn't re-chargeable, she will be constantly buying batteries.
Also the higher mega pixels doesnt mean its better, unless of course you want to print out pictures in A3 or bigger.

Honestly that sony w35 i posted will be fine, dont let the cheap price put you off, it takes fantastic pictures and has a few settings and different modes to play about with, and you have £20 to spare so you could get her a 2GB memory card to go with it