Digital camera technology is moving at quite a pace. Each new product has features found on more expensive cameras at lower prices. Here are a few things that come to mind when you're shopping around for a camera. Be aware that everyone's needs and priorities are a bit different:
Don't get sold on Mp specs. Like hi-fi, one can get caught up in audio power (watts), when in fact power is but only one aspect of audio "quality". Here's a link that visually shows the difference between a 2-3-4 and 5 Mp image. It's not much.
http://www.digitalsecrets.net/secrets/SizeMatters.html
I might pay more attention to:
Camera response: lag time at "shutter release", write speed after image capture and perhaps (for some) lag time from switch ON.
Range of zoom: You pay more for more range - period. Whether having a 10x zoom is important is up to you. If you're shooting car races, a longer zoom is advantageous. If you're shooting friends, family and landscapes, a shorter zoom range is all you should need.
Minimum angle of view: Most zooms have a max. wide angle view of around 35mm (35mm equivalent). In the 35mm world, that's a normal lense - not nearly wide enough for a lot of shots. I look for point-and-shoots with a wide zoom angle. Not too many, so that helps narrow the search.
Image quality: Overall, most cameras create very acceptable images. However, compared with more modestly priced cameras, some high-end cameras don't have the optics to back up their cost.
I misplaced the website that allows you to compare standardized images from two digital cameras in a split screen - big list of consumer to pro level cameras.
If anyone has that URL, please let me know. Quite enlightening.
Battery type and life: I'm still partial to commonly available AA size batteries. The NiMH batteries are being made with more capacity, and the AA size compartment means alkalines are there for emergency, backup purposes. Some digital cameras, however, are very power-hungry while others can last for many hours even with the LCD screen lit.
Moveable LCD screen: Nice feature for those creative camera angles.
Budget: That's up to you. You figure out what's the biggest bang for the buck.
Here's a camera that's worth following as it's not yet released. Olympus C5060. Only 4x zoom, but the wide angle is 27mm - I believe the widest of any fixed zoom lens camera; very quick response time, moveable LCD screen. List $700. Check the independent reviews before buying.
http://www.dpreview.com/news/0309/03092902olympusc5060.asp
No affiliation, just interest.
Sherwood Lee
http://members.rennlist.org/911pcars