Someone asked me about buying a small point & click digital camera today, and I thought the following info might be helpful to others in the hunt for information...
The original question concerned what was better, and how they were different: Digital or Optical Zoom, and what would I recomend...
Here is how I responded (based on a knowledge of the needs of the person I was responing to. Your needs may vary.):
Optical zoom is good, digital zoom is bad. Digital zoom is similar to making an enlargement of the center of a photo -- loss of quality.
Recomendations really depend on budget and preferred camera size. There are some really good cameras in the $300 price range that are small.
A good place to do a little research is on http://www.dpreview.com - has a lot of info to digest, but has some fairly clear explanations of what is what. Also has a decent "buyers guide" that might help, and lots of reviews that you can compare to models that you are looking at.
There's a lot of models. I'd actually suggest going to a big camera store, and talking to someone. Don't let them upsell you beyond your budget. Start with a budget $50 lower than initial planning (for a 512MB or larger memory card and a case.)
Ask to see models that are in the same price range as what they initially show you. Ask why they suggest one over the other. Ask how the different features work, and how to access the menu systems. Especially how to turn on/off the flash.
You want a camera that is in the 3-5 "mega pixel" range (you don't NEED more than that, although if it's within your budget, go for it - more is better, but you pay for it.)
Select a camera that:
1) feels good in your hands
2) is easy to operate (including menus)
3) feels sturdy, operates cleanly, isn't clunky or grindy
PS - in that price range, there will be a great deal of better cameras coming out within the next few years. Don't let them sell you "protection". The cost of the protection is half the cost of a new camera should you actually need to use it. And if you need to use it, there will be newer, better stuff out by then.