I'd say it depends on what she wants to do with the camera.
Most of the compacts are usually sold with "how big is your zoom!", which is useless if you want to try and take landscapes, where you are mostly lookiing for a wide angle lens.
For £130 (or a little more), you might find an older prosumer camera on Ebay, like the KM A1 or A2 etc (which are great cameras btw), but if she's after a compact she'll hate it.
I have a Fuji F610 which has their SR 6mp/12mp high dynamic range sensor thingy, and I must admit it takes great shots in the worst conditions, without any post processing (if a little over sharpened).
I do like the Fuji cameras, and have thought for a while to jump ship and get their DSLR S5. The only thing I dislike about the Fuji is that they take "xD-Picture Card", which is the least popular of all the card formats.
As for other options, I think Olympus do one of those rugged, water proof or splash proof/dust proof compacts, but can't remember the price.
IMO, you need to decide on what lens you want, and more importantly what phyisical size (and maybe if you require more manual type settings). Once you have these, it's just a case of picking one that is the nicest colour!