However I'm confused, I read in some places that you can set ISO and on other places that ISO override usually don't work.
Not sure what you read or where? There are years worth of posts here and some of them are now inaccurate, out-of-date, or just plain wrong.
Can you or can you not set the ISO with chdk?
You can definitely set ISO, as well as Tv (shutter speed), and if your camera has an adjustable aperture the Av (f-stop) using CHDK.
Although, on almost all of my different Canon P&S cameras, it's possible to specify the ISO setting without using CHDK.
The cheapest point and shoot with at least 16MP canon I found right now is the powershoot 3500 IS (75€)
Unfortunately, nobody has ported CHDK to the A3500.
link> CHDK FAQ : My camera isn't ported yetIf you are willing to help with testing, you might be able to get someone here to do a port for you.