Ah, Kodak, great cameras for the beginner. Not so much for the serious user, but they have probably the widest range for sub $200 cameras around. A friend of mine bought one about a year ago for her 6 year old son and he has had a blast with it. Though now he wishes it has some zoom capabilities. But, the pictures aren't bad.
Personally, I think starting them off with a cheap-o non-zoom camera is the best way to go. Why? Because without the zoom they will be forced to think out side the box to get great and creative shots. I think it teaches them more about photography and how to frame and so on than starting with one that has all of the bells whistles.
Though you do need to be prepared for the time when they will want and need a better camera.
Robert