If your secret location is in the US I have a couple of suggestions.
CompUSA has an Argus 2Mp with no optical zoom for $80 after a $20 rebate mail in rebate. It takes SD cards but I have no idea how much it comes with.
If it were my kid I would probably spring for the Fuji A205 at Target for $150. You get an instant free $30 gift card with it, so the cost is $120 if you do any other shopping at Target. It has a 3X optical zoom and comes with 16Mb of memory. That isn’t a lot of memory but he can shoot at standard quality until you find out whether photography “caught” with him. It would give 25 shots – more at lower quality. This is the camera: http://www.steves-digicams.com/2003_...fuji_a205.html
Go to the conclusions page where Steve seems to like it as a first camera for a youth.
It is limited in advanced features, but an optical zoom might let him take pictures that are good enough to be proud of and want to progress.
Anything you buy you would want to get a charger and NiMH batteries. Alkalines don’t last very long and their price inhibits freely experimenting. They are pretty cheap. Maybe you could use the gift card with the Fuji for the charger and batteries. Get 4 batteries so he has a spare set in case interest is high enough to get a bigger memory card. The gift card should cover it.