I got a private message asking me for my recommendation, so I'm going to answer here.
It depend on if you are happy with totally automatic or if you want to be able to choose your shutter speeds and f stops (SLR - single lens reflex).
If you want totally automatic then simply find the mega pixel size you want and the price you are willing to pay. I had a Kodak 4 meg that I loved. It lasted 3 years here in this humid salty environment. It fit my hand and my pocket nicely.
Do you want to be able to make prints larger than 4 x 6"? Anything over 4 megs will give you everything you need for e-mail, CD's and up to about 8 x 10" prints.
If you are doing anything more than this then you probably want something you have more control over = SLR Control costs money!!! I did a lot of research and choose the Nikon D70.
I shoot in RAW which gives me the options that we used to have in choosing film - indoor, outdoor, incandescent, florescent, bright sun, shade, etc. By shooting in RAW, when I download, I can choose one of the above.
Advantage - lots of control.
Disadvantage - lots of time
It's kind of like a relationship - find one that suits you. You need to go out and hold them in your hand before you make the commitment.
AmbergrisCaye.com 
