I have a Canon 350D which is a great SLR camera. I bought it last July for £360 and it's really easy to use. The 18-55mm kit lens is pretty naff so I bought a 70-300mm f4-5.6 Canon lens for sports/equine photography and it was pretty good.
I work for a pro show photographer and this camera has taken me all the way from beginner to pro... I've just bought a Sigma 70-200mm f2.8 IS lens which cost twice what the camera did but it's fantastic- theres some photos in the PG- Chyverton ODE XC.
If you're not looking for SLR, the Fuji S5700 is very good for £130... it's halfway between point and click and SLR photography. I had the older version of it and produced some fantastic jumping photos with that.
I have a Canon EOS 40D with a 90-300mm lens. I love it to bits, really easy to use, 6 frames/sec so good for sports photography. Lens is sold seperately though.
i had a similar dilemma recently - like you i wanted something small easy to use for just general point and click photos - with some action shots?
I got the CasioEX-Z75
costed 85/95 pounds off amazon, bought a £2 memory card as well and haven't looked back. love it to bits and its dirt cheap
the sports mode is really good too, and i've plenty of examples of pics i've taken with it if you want to see.