I am an avid DSLR fan. I have a Canon EOS 300D (the original Digital Rebel model) with two lenses, an 18-55 and a 75-300.
P&S cameras are good in that they are lightweight and can take decent pictures. The problem is that their zoom is very limited. If you get one with digital zoom...well, don't. Digital zoom tends to make for very grainy shots. Use the optical zoom (the lens actually moves) instead. It'll work just fine.
As others have said, don't get caught up on Megapixels. A 1.3MP camera (my first digital camera) can take good 4x6 pictures. Most cameras today start at 4-5 times that (mine is a 6.3MP). The big advantage to a higher MP count is that you can crop or resize the photo more easily. For just plain printing, don't worry about it. Your desired features are:
1. Ease of use
2. Comfort of use (is it easy to hold)
3. Reputation of the manufacturer
Most cameras come with several shooting modes. That's another useless feature. Most people won't bother trying to figure out what the symbols mean, anyway. The one exception, if a camera has it, is the no-flash mode (it looks like a lightning bolt with a square and a slash through it). The camera disables the flash and steps down the shutter speed or turns up the ISO setting to compensate. If you take dusk pictures, this is your best friend. You never want to use a flash on something that emits its own light, because you won't see the light.
Let me give you some advice. DO NOT ORDER ONLINE. I don't care how inexpensive the camera is online. Not only will you not be able to get a feel for the camera, there are places (A&M Photoworld is one of them) that are downright criminal in how they operate. You order from them, forget about ever seeing your camera again.
DSLR photography is a whole different ballgame. Most low- and mid-range DSLR's are not full-frame. What you will get is a fraction of the entire lens' viewing mode. If you want full frame, be prepared to pay for it, and I mean BIG TIME. Full-frame, professional-grade DSLR's start at about $2500 (not a typo).
In this realm, you have to consider:
1. The availability of lenses
2. Is the camera SLR-like or a true DSLR (if it doesn't have interchangeable lenses, it's not a true DSLR). If you don't care about interchangeable lenses, I don't recommend going the DSLR route.
3. Ease of use (you're going to need to learn how to use the camera...how to frame shots, etc. and you don't want to make it any more difficult than necessary).
4. Make sure the ISO rating goes at least to 1600.
The idea here is get a well-known brand, because you really should be using that manufacturer's lenses.
If and when you go that route, you need to get just the kit. That usually is a camera body with a standard lens (usually 18-55mm). Don't buy lenses until you are sure you want to keep the camera and stay with the brand. It's expensive to switch brands once you have lenses for it.
When you are used to the camera, a good telephoto lens is invaluable. It might seem superficial to stand so far away from the subject, but it isn't always possible to get up close to the subject. I use a Canon EF 75-300mm telephoto lens for my lighthouse photography, because I can stand on the ground and take pictures of the Fresnel lens (see
http://viewmorepics.myspace.com/index.cfm?fuseaction=viewImage&friendID=410402946&albumID=251901&imageID=1128472 for a good night shot). It cost me $250 (not a typo either), but it was worth the cost. Lenses are not cheap; don't go hog-wild on it.
You'll need a camera bag that will hold your camera body, a few lenses, and the battery charger. Get room to grow, even if you're sure you won't. I keep both my sunglasses and regular glasses in mine when I am away from my car.
