It all depends on what quality and usage you want from the camera. For general purpose 2.2 to 3 Megapixel camera is good enough. If you want something more eye catching then go for 4 - 5 Megapixel one like Sony DSC-F717 or Minolta 7i which are both 5 Megapixel cameras with bells and whistles for around $700 - $900. I personaly have the Sony DSC-F707 (previous model) which is a 5 Megapixel camera and totally love it.
Good luck with shopping 
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