Well, I'm no expert, but I just bought a Fuji FinePix E550. I researched for about 3 months, and this one got really great reviews. Here's a review that I found helpful:
http://www.dcresource.com/reviews/fu...x_e550-review/
The camera has:
6.3 MP
4 X Optical
Option to use additional lenses
The quality of prints I've got from this thing are AWESOME. The orig. price was 369, I got it for 200 on clearance....it was last year's model. Fuji has this year's model out that looks just as good, in the 350 range. ( the only thing that bothered me about the newer model--I can't remember the exact number of the model but it's in the E series-- was that it had no view finder. I didn't like the idea of not even having the option of using a veiw finder).
I was also looking at Sonys, maybe someone has something to say about them. Ultimately I got the Fuji for the large-for-this-price-range MP. I have been THRILLED with this camera!