Inexpensive good quality cameras?

My grandma has a nikon cool-pics and it is one of those "professional" cameras. I'm absolutely in love with the pictures it takes. I'm look for a camera like that for myself - but don't want to spend a lot of money. And the thing that makes me like the pictures the nikon takes is that the back round is blurry while the main focus is extremely clear. Any camera that will give me those results but is inexpensive?

under $200

Buy an ipod touch 4th gen. It takes pics and videos in high definition! Just the 8 gigibite will run you max 200$ but it is by far well worth it!