And don't forget a good rigid case - you don't want to have searched high and low for just the camera you want for the right price just to open your rucsac and find you've cracked your screen!
As for memory cards. SD is probably the way to go, definately the most common at the moment. I would recommend 512Mb for a 5Mpixel camera. You can pick these up for about £18 if you search hard enough on the internet.
I just seen on eBuyer that they are selling 1GB SD cards for about £20 including free P+P, sounds like a pretty good deal to me! Gonna grab a couple at that price!