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.