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Basically, megapixels tell you how much a picture can be enlarged before the picture it loses quality- for instance- if you want 8X10 pictures- you will need more than 2 megapixels, however 2 megapixels is fine for snapshots. Also, more megapixels are needed if you do alot of cropping in a picture and then enlarge it.
Also, most cameras come with small memory cards- so you might want to budget some money for more memory.
PCworld, CNET, and other popular sites have recommendations for digital cameras.
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