I have two that I really like!
This one is for lo-fi rough captures of melody and lyric ideas. I carry it everywhere so I never miss an idea. It only costs $30 at Amazon. It has a built-in USB arm to make connecting it easy. Only thing I don't like is the files have to be converted to use on your computer. Not difficult but an extra step.
RCA VR5320R 1GB Digital Voice Recorder
http://www.amazon.com/RCA-VR5320R-Digita...igital+recorderFor high quality recordings I suggest a stereo field recorder. I bought the Zoom H4n and I just LOVE it! The quality is so high that I use it for all of my recordings and then bring them into my DAW on my computer! It has stereo recording plus multi-track mode so I can layer additional tracks as I listen to previously recorded ones. Way too many features to list here!! But it is a little higher than the number you mentioned at about $270.
Zoom H4n Handy Portable Digital Recorder
http://www.amazon.com/Zoom-Handy-Portabl...ywords=zoom+h4nBoth Zoom and Tascam make some nice ones in the $100-$200 range so you could check those as well.