1. Megapixel: You should buy the highest megapixel you can afford without overspending. Generally a 2 megapixel will be sufficient for general usage for both printing and use on the web. However, I do recommend getting a 3+ megapixel. A 3.3 megapixel camera can capture images at resolutions up to 2048x1536. A 2.1 megapixel camera has resolution up to around 1632x1224.

Personally, I usually take pictures at the resolution of 1632x1224 which equates to about 2.1 megapixels. 2.1 megapixels or 1632x1224 is the optimum resolution for both quality and quantity (memory usage).

Please do not get caught up wasting your money on buying 5+ megapixel cameras. Manufacturers like to have you believe paying a premium for the highest megapixel camera in the market place. Most of us will never have a need to take pictures at over 3.3 megapixels. Higher the megapixel does not necessary mean better pictures. Your technique and creativity are the two most important factors that will affect the quality of your images.

2. Memory: This can get very expensive. Well, memory is getting cheaper. This may not be that big of a factor in the future. You want to consider buying a camera that comes with as much memory as possible. In most cases you will need to purchase additional memory because camera manufacturers are cheap like that. I definitely recommend having at least a total of 256 MB of total storage and up to as much as you can afford. This way you can take more pictures using the optimum resolution of 2.1 megapixel.

For example, on my 8 MB memory stick, at the lowest resolution (640X480), it can store up to 150 pictures. However, when at the highest resolution (2048x1536), the 8 MB can only store about 2-4 pictures. Now that's a huge difference. OR on my 64 MB card, at 640x480, I can store up to 900 pictures. At 1280x960, the 64 MB card can only store up to around 120 pictures. At 1632x1224 (my preferred resolution), the 64 MB card can store between 55 - 60 pictures.

For a full day of shooting during sight seeing, I have found that my 256 MB card which stores around 220 photos at 2.1 megapixels is sufficient. I often shoot the same object or scene multiple times. It never hurts to have backups.

Quality versus quantity!!!!!

3. Battery Life: The longer the better of course. You want a camera that has a gauge for battery life. I think most do these days. A camera using the standard NiMH rechargeable AA or AAA is preferred. You can purchase these batteries at the local Radio Shack without costing you an arm and a leg. Also you can pop in normal AA batteries to capture a few more precious moments if you discharged your batteries before the end of the day. However, you can expect the camera to be a larger and bulkier due to the shape and size of standardized batteries.

Custom batteries cost a lot more, but the manufacturers can make the camera really much smaller. If you are looking for a compact pocket-sized camera, it will most likely come with its own rechargeable batteries. These specialized batteries can cost $50 a piece or more. You should add this cost to your budget when you look for cameras.

You will always want to get a back-up battery(s) for the camera. The second battery is not an option, it is a necessity. I personally have three sets of batteries for my camera.

4. LCD Screen: you want to make sure that you are able to SEE the LCD screen in bright daylight. If the LCD is crappy, you won't be able to see it outdoors during those sunny days. You definitely want a camera with a LCD screen. It is easier to take pictures using the LCD screen than the built-in viewfinder. I always take pictures using my LCD for better composition. I would not consider the viewfinder as a criteria when looking for digital cameras. Most viewfinders on digital cameras are crappy and unpractical. However, a good quality LCD screen is a must. Using the LCD screen will drain your battery quicker; however, this problem can be easily compensated by carrying extra batteries. What you see in the viewfinder is not necessary what you will get especially for the under $400 digital camera.

5. Menu System: you want a camera that has an intuitive menu system with quick and easy to understand navigation. Sony did an awesome job in creating a menu system so that you can access the large amount of features available within a digital camera.

6. Connectivity: you will want a camera with at least a USB connection. USB 2 is recommended even if your computer only has USB 1 port. You will have USB 2 when you upgrade your computer. USB 2 transfers at a much higher speed than USB 1. When you have 128+ MB of pictures on your camera, it will take a while to transfer those files from the camera to computer. You will defintely want a fast connection if you have one of those 1 GB memory cards. Faster the better. Now, if you have a fire wire port, you may consider cameras that can be connected using fire wire.

I also recommend buying one of those memory card readers to ease the process of uploading your images onto your computer without having to fumble around with a wire all the time.

Another nice feature to consider is the ability to connect your camera directly to the video input jack on your T.V. This is a nice feature to have. You may share your photos with family and friends using a big screen and comfortable couches instead of everyone huddled around your computer, looking over your shoulders.

7. Optical Zoom: I would discard the claim for digital zoom for all digital cameras. Optical Zoom is the key. Higher the zoom the better. This way you can really zoom in from far far away without disturbing your subjects. Just remember to hold your camera steady or use a tri-pod when zooming. Using a camera with optical zoom up to 10 times or more may require the use of a tri-pod to produce crystal clear images unless the camera has built-in image stabilization to compensate for any slight shakes or motion during shutter press.