depends on ur price range. I have a canon powershot s30, 3.2 megapixel and its awesome. if u have tons of money to spend get a digital slr, but something around 3 megapixels is fine. after that u cant really tell the difference unless ur really serious about photography.
Don't do what this guy said about Digital SLRs. They don't make your photos any better unless you actually know how to use it.
I can recommend Canon A-Series cameras though (A80, A75, A90 etc). I used an A70 all last year.
Also, include the cost of 4 AA rechargeable batteries (get high-capacity NimH batteries, mine would last me 6 hours between charges) and a high-speed charger. Total cost $60 Canadian for the battery stuff. If you got an A80, 128mb card and good batteries you'd have a sweet setup.