C.H.
Unless you're planning on enlarging (8x10" or larger) most of the photos you take, you probably don't need a camera with more than 4 or 5 megapixel resolution. Most standard photo developing software (like what's used at Costco and Walmart) is actually maximized for 4 megapixel images and may make a higher resolution photo come out grainy rather than more clearly (ironically). I found that I prefer the control I have over the focal length with an SLR camera over the point-and-shoot. We have a Nikon D40 - 6 megapixel, and an Olympus of some sort - 4 megapixels. There's no doubt the Nikon takes "better" photos, but that's only when we're looking at them on the computer - it's hard to tell the difference between the prints.