The best phone I can recommend that can fit your budget would be the Sony Ericsson Xperia X10 mini pro which is Android and has capacitive TS. I know you said that you want something under $200 but raising the bar just a little bit will ensure that you will get a great phone which you won't regret afterwards. I checked with Tiimtechs and it's about $249 and it's already factory unlocked. Good luck!

Check out the Motorola Cliq 2 - it may be hard to find under $200 though.

The Motorola Cliq xt is a little cheaper though

both are originally sold on t-mobile and can be unlocked.

Android Unlocked Handset – Expert Advice Requested

Hi friends,

I need your expert inputs to come quickly to a decision on my phone.

Requirements:

# Android based OS
# Capacitative touch screen
# GSM based - To be purchase here in USA and can be used in india later on
# Unlocked or can be unlocked easily (preferably legally – won’t mind paying couple of bucks to handset manufacturer)
# Large screen better
# Budget USD 200

I know its difficult to get in 200 USD but any inputs welcome.
Thanks
sunando