You have to decide what you want to do ? what kind of pictures you want to take. If you want to take potraits, you want alot of megapixels. If you want to sell generic shit on ebay, you don't need more than $100 camera. If you want decent pics for say your vacations, family occasions, and some killer car pics, I would stick around 3.4 megapixels. You may also want to compare the shutter speeds when choosing a camera, the faster the better, especially if you want to take any shot of something moving, the faster it opens and closes, the better your picture will be. I shoot with a Nikon Coolpix 885 and it works great, its a 3.4 megapixel and I love it, the only downside is the fastest shutterspeed is 1/2000. BUT, this camera will only set you back about $325 if you catch it on ebay. The next step up might be a Coolpix 5000 which has great megapixels and the shutter is twice as fast. Just make sure you compare the specs when you narrow your search down.