IMO, Digital cameras are the best thing since sliced bread...
As far as how many MP to get, it depends. If all you want to do is post on the web and print 5x7's, a 2MP camera will do fine, but I would strongly recommend spending the extra money and getting a 3-4MP camera, particularly if you want to print 8x10's or need to crop. You're gonna be pretty pissed when you take that awesome shot with your 2MP toy and can't frame it as a film quality 8x10 (like you can with 4MP).
As far as brand, I'd pass on Nikon. They had their day with the Nikon 9xx series and sat on their butt for the last two years only to be left in the dust by Canon and Sony. The holdout Nikon purists themselves are even panning the new CP 5000 which should tell you something. Sony is a good brand, but is known for oversaturating colors, particularly reds. I'd like Oly a lot more if they didn't use smartmedia. You really can't go wrong with Canon. Most accurate colors, uses compact flash (not dumbmedia or betamax memory$tick), microdrive capable, flip out LCD, hotshoe, minimal chromatic abberations (still a problem with the Oly's), RAW format, great rechargeable battery, remote control, and I could go on and on.
As far as getting a good price, you only need to know a bargain sleuth like myself. There were some fantastic internet deals at Christmas being able to quadruple scoop with the $100 MSN Passport Holiday reward, $100 off your next purchase gift certificates at some stores, Amex Blue pricematching, cash back via ebates.com, etc. All said, I got my Canon 4MP G2 for less than $350 at Christmas (and it still can be had for < $525 tax free, email me if you want details).
In my opinion, the Canon G2 is hands down the best digital camera out there right now for under $1000. If you want something more pocketable, try the Canon S30 or S40. Don't take my word for it, read the reviews on the web. The best place to get digicam info is at the reviews, forums, and links over at http://www.dpreview.com.
As far as weatherproofness, I've used my Canon G2 in the rain, sleet, snow, heck, it even fell into an icy cold creek with me and was immersed! Stuck it on the food dehydrator for week and far as I can tell it still takes as good shots as the day I took it out of the bag. Check out that picture below (taken after all this abuse) if you need some convincing. Now, that's not to say you shouldn't stick it in a waterproof plastic baggie. I do now!
Finally, ignore anything consumer reports or computer magazines have to say. They might be capable of reviewing dishwashers and computers but not cameras. It breaks my heart when I see a couple shopping for a camera at BestBuy or CirciutCity with at an outdated, uninformed printout from cnet.com or consumer reports. Listen to the folks who know cameras and that is NOT necessarily the folks at your local camera shop either - your mileage may vary.
Canon G2, F/8, 1 second shutter, no filters, straight out of the camera.
[ 02-16-2002: Message edited by: tomdav ]