What kind of computer are you using? I use a Macintosh. I bought a top of
the line digital camera a year ago, but found that connecting it to a
Macintosh for transferring images was such a hassle that it just wasn't
worth it. Recently I bought another digital camera that is more
Mac-friendly. That one I found at www.warehouse.com, which is a great place
to get anything Macintosh-related.
On the megapixel question, 1.2 to 2.0 is really bottom of the line. That
would be ok for taking pictures of the family or of a sunset, but if you are
going to do any closeup shots of small objects, I would recommend at least a
middle-line (3.0 to 3.5 megapixel) camera, several of which should be
available within your price range.

Paul M.