>> I am thinking maybe $100 or so per person...
>> Not really sure what is reasonable to expect here. I am hoping for maybe a mile or two in mountainous and timbered terrain.
>> I probably need dummy proof more than the weatherproof, but I water resistant/proof would be a big plus.
>> Handheld
>> Mountainous timbered terrain.
Sounds like you already have a good idea about the limitations your terrain induces.
I would buy a GMRS radio pair and test them with the family next time you are out in that environ. If the power level works then license the family (I think it's now 5yrs/$65 with FCC). That would be the most cost effective, weather resistant, dummy proof, easily replaced but still have option to add decent accessories. Use the higher power GMRS channels for testing vs. the lower powered FRS (FRS doesn't require the $65 FCC family license).
If they don't work then it's not a huge expenditure... and the radios are still very useful around the house, town. There may also be vehicle radios with 50 watts power legal for some GMRS channels (not the interstitial channels):
http://wiki.radioreference.com/index.php/FRS/GMRS_combined_channel_chart
I recommend a speaker mic for the radios. First, it allows you to hold the radio up/away from body when you're at the fringe of radio coverage. Wearing it down by the hip is fine and works most of the time but your body will block/absorb a good bit of the signal you need at the fringe. The option to remove the radio and hold high above your head is very good. Second, some speaker mics allow for earphones to be plugged into the mic. GREAT when you NEED to hear in high noise environs (under a bike helment or under ear pro) or hunting/quiet to keep from disturbing game.
Practice optimum techniques:
- Talk ACROSS the mic element or mic face, not direcly into it; talk across the front of the radio or mic, not directly into the face of it. It will eliminate the voice puffs that hamper intelligibility.
- Find out where the mic is and how to talk in windy conditions. Cup your hand over the mic/turn your body to block wind from that direction all without covering the mic element. Turn the shoulder mic over in the rain so water doesn't pool in the mic hole.
- Keep antenna polarity the same--if both parties keep their antennas vertical it can help at the fringe of reception. Going horizontal while someone else is vertical has an effect. Easy to forget in casual or stress use.
- Brush, trees, intervening terrain all affect your line-of-sight propogation with these radios. Get to the highest point.
I tend to break belt clips. There's a guy on eBae that's been selling milsurp RLCS pouches cheap compared to the Voodoo and other knockoffs.
If you find those GMRS radios don't work so well then take the plunge into ham radio. It is the best legal bang for the buck with the best power and accessory options. Dummy proof, simple radios or multi-feature radios you can grow with. Simply adding a roof magnetic mount antenna to your handheld radio can do wonders.
You will see a ton of people talking about Baofeng, Wouxun, Puxing, etc. radios on MURS. MURS was moved to Part 95 and most of those mentioned radios are Part 90, 97 accepted. MURS is 2 watts max, most of those radios do 1 watt and then jump to 4 watts and up. Also, you get what you pay for with those radios and their accessories. If you choose to buy one, the Wouxuns are generally better quality. There are a lot of counterfeit Baofengs out there too.
While I am a big fan of commercial/marine quality radios from Vertex Standard, Standard Horizon, Icom... the Tytera radios have really grabbed my attention. Decent quality and they offer analog AND digital for the same price as other radios. I used P25 mode radios in public safety and really appreciate the clear audio quality from close by all the way to max range. If I were going into Ham radio I would give them a hard look for the dollar. Might not be the most dummy proof though.