Turtle Beach X41 Xbox 360 Wireless Gaming Headset $105 at eBay
eCost.com has the Olympus SP-565 UZ Black 10.0 MP Digital Camera for $240 + $11 shipping = $251 with free shipping. It has an awe-inspiring 20x optical zoom lens set that is equivalent to a 26-520mm lens on a film camera. [Compare]
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How does this compare to a DSLR? Is it no better than like a SD860 in terms of low light operation?
It's not really a DSLR as the lens is not removeable. Although Olympus uses very good Cannon glass. I'm a little leary of the extended range of this lens.
It has good reviews #2. I think you worry to much.
like all of the superzooms, it's a small sensor - 1/2.5". As a rule, all cameras with sensors that small are poor in low light. bigger sensor = better in low light, though there are a few exceptions - Fuji's F20 through F50 have better low light than most compacts, as does the Lumix LX3.