You have two choices - either use online mail and picture storage through internet cafes or as you suggest carry a small laptop.
Lots to chose from now most inc webcam, wireless etc. but for the budget you are probably limited to laptops with Linux but I think PC world have their own models so pop along and have a look if you have one near you.
I've got a Asus eee 900 PC with XP - 9 inch screen is pretty good and keyboard fine for most people. Battery life is so so at 1-2 hours with wireless on. Newer versions of eee PC have larger screens, bigger drives and better battery life >4 hours? but over £300. The HP mininote 3120 looks v nice with a hardrive of 120gb...
STBO (stating the bleeding obvious) section:
You will need to be careful that your laptop esp if you have your holiday pictures and personal info - get good insurance, protect it from dust/humidity plus consider encrypting the drive or just your personal folders and be very careful about free wifi connections in public you can use an encrypted connection/VPN with ipig (free) but it requires a bit of knowledge to use. or use a paid for VPN connection to secure your internet connection when in public places
Install free comodo firewall with internet security, a good antivirus (AVG 8 free, AVAST! are both free), install and update spywareguard and spywareblaster regularly both will protect you from some web nasties, A squared/Spybot will clean your PC too.
I am using another Comodo program DiskShield (beta) which you switch on to protect your pc, do your stuff online but remember when you switch it off and reboot and any changes you made are removed - so only use it when you are updating webpages and using webmail, not for your pictures!!
Sounds like overkill I know but you don't want to lose your pictures and identity...have a great trip.