I'm lookin to spend around $100 for a preferably 12+ mp camera. Picture quality is important & as large display would be preferable. I'm willing to compromise,. I just want to get a good gift. I doubt she'd want to mess with settings & modes much so a Smart Tech to help with the pictures would be nice. Good image stabilization is always nice too.
First off, megapixels don't mean squat anymore so don't let that number hold you back.
I've had a Kodak point and shoot before and liked it. If you want to spend a little more, you can get the Panasonic Lumix FH-20 for $140. I personally think they're the best sub-$200 point and shoots out there. For $110, you could get a Canon Powershot SD1300 which has a 4x optical zoom (as opposed to the Kodak's 3x), image stabilization, and a dedicated low-light mode so you don't have to fiddle with settings. For $90, you can get its little brother, the A3000, which has all those things but a smaller sensor.
A tool that really comes in handy for situations like this is the Flickr Camera Finder. It lets you pick different kinds of cameras and shows you pictures people have taken with them. It's great for helping you figure out what kind of image quality you can expect from a camera.
That Kodak's not too bad, my brother has a previous generation and it seems to be a good general camera. I've got a Nikon CoolPix S550 for when I don't have my DSLR on me and it hasn't let me down although I'm pretty sure it's a generation or two old now. You actually just missed a really nice Panasonic Lumix that was up on Woot the other day. However, they often have point-and-shoots up on there (and sellout.woot) so check that out every now and then.