Bob,
It all depends on how much you want to spend and what you are going to use it for. IMO if you are just going to use it for taking workplace photos then you can go on the lower end. If you are going to use it for taking pictures of the family then go on the higher end. I just recently bought a Canon G3. 4 megapixel and am extremly happy with it. I spent a little more than I wanted to, but IMO it is worth it.
Case in point when my wife graduated from college she bought a good camera. It takes great pictures. We know this because once we went to Disneyland and her sister had borrowed her camera. So we bought one of those throw away cameras. The pictures that we got back were grainy and not the quality that we were used to.
Scott
